Ms. Tanja Umstead is 46 years old and lives in Richmond, British Columbia. She is in good health
and works in the sales department of a large publicly traded company.
Employment Information
1. Tanja's 2022 salary is $93,500. In addition, she was awarded a year-end bonus of $12,000, all
of which is payable in January 2023.
2.
Tanja's employer sponsors a defined benefit RPP. In 2022, Tanja and her employer each
contribute $4,150 to the plan. In addition, her employer withheld maximum El contributions of
$953 and maximum CPP contributions of $3,500.
3. Her employer offers to pay the tuition for employees taking foreign language courses. Tanja is
taking an intensive course in spoken Chinese at a British Columbia university. The course is
a course of personal interest and is not related to Tanja's employment. The tuition fee for the
course is $3,600, all of which is paid for by her employer. The duration of the course is eight
months.
4. Tanja is provided with disability insurance by an employer-sponsored plan. In 2022, as a
consequence of an automobile accident, she was unable to go to work for one month and
receives benefits of $6,500. Starting in 2020, Tanja has contributed $340 per year for the plan's
coverage. Her employer made a matching contribution in each year.
5. Tanja's employer provides her with an automobile that was purchased several years ago at
a cost of $39,500. In 2022, the car is driven 41,000 kilometres, 34,000 of which were for
employment purposes and 7,000 for personal use. Tanja is required to pay her own operating
costs, which for 2022 totalled $7,240. Except for the one month that she was off from work,
the car was available to Tanja throughout the year. During the one month that she was off, the
car was left in her employer's garage as required by her employer's policy.
6.
Tanja's employer provides all of its employees with financial counselling services. The cost to
the company of the services provided to Tanja was $450.
7.
As a result of winning a sales contest, Tanja received a one-week trip to Las Vegas. The value
of this trip in Canadian dollars was $5,620.
8.
In 2020, Tanja received options to acquire 250 shares of her employer's common stock at a
price of $25 per share. When the options were granted, the shares were trading at $25 per
share. In 2022, Tanja exercises all of the options. On the exercise date, the shares are trading
at $32 per share. Tanja still owns the shares on December 31, 2022.
Required: Calculate Tanja's 2022 minimum taxable income
Ignore any GST/HST & PST considerations.