Stuart Planter Owns a Small Country Plot Where He Resides

question 6

Essay

Stuart Planter owns a small country plot where he resides with his family.In the spring and summer,Stuart and his family grow vegetables to sell at the local farmer's market.Stuart earned $83,000 this year at his full-time teaching job.During the year he also incurred farm expenses totaling $12,000 and farm revenues totaling $8,000.
Stuart has asked you to help him prepare his tax return for the year,and provides you with the following additional information:
• Net capital losses from the previous year total $10,000.
• Stuart had the following amounts deducted from his pay during the year: CPP and EI of $3,340; and federal income tax of $21,000.
• Stuart invested a total of $20,000 during the year to a TFSA and GICs.He contributed $5,000 to his TFSA,and the remainder to a guaranteed investment certificate which pays 4% annually.His first interest payment is due on June 30^th of the following year.
• Stuart's wife works full-time and earns $68,000 a year.She does not claim any of the children's tax items on her tax return.
• Stuart's three children (born in 2000,2002,and 2005)were all fitted with braces on their teeth during the year.The total cost was $7,500 and Stuart did not receive any reimbursement for the cost.
• All three of his children played soccer during the year.The registration cost for each child was $700.
• None of the children have a source of income.
Required:
Calculate Stuart's minimum federal tax liability for the current year.Explain why any items may have been omitted.(Round all numbers to zero decimal places.)

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Definitions:

Dissociation

A psychological experience in which there is a disconnection between thoughts, identity, consciousness, and memory, often occurring as a response to trauma or stress.

Allostatic Stress Load

The cumulative burden of chronic stress and life events that can affect an individual's physiological functioning over time.

Anaphylactic Shock

A severe, potentially life-threatening allergic reaction that can occur rapidly, leading to symptoms such as difficulty breathing, swelling, and drop in blood pressure.

Hypertension

A medical condition characterized by persistently high blood pressure.