Reference no: EM131794580
John Ingles has provided you with the following information related to his various investment holdings as of December 31, 2016.
Interest earned on joint bank account with his spouse (spouse contributes equally) $ 2,000
Interest earned on his investment account (not joint) with his investmentbroker 800
Interest earned on 2015 personal income tax assessment . . . . . . . . . . . . . . . . 450
Interest on short-term investments:
$20,000 term deposit taken out November 30, 2016 (interest at maturity insix months)
Accrued interest from December 1 to December 31, 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . 85
$200,000 GIC purchased November 1, 2015 (interest payable at maturity onOctober 31, 2018)
Accrued interest from November 1, 2015 to October 31, 2016 . . . . . . . . . 16,000
Accrued interest from January 1, 2016 to December 31, 2016 . . . . . . . . .16,214
Government of Canada Treasury Bills purchased for $9,009 on December 31,2015 and amount
received on maturity on December 31, 2016 . . . . . . . . . . . . . . . . 10,000
Cash dividends received from investment in common shares of Canadian resident public corporations 24,000
Cash dividends received from common shares in US corporations (net of $3,000of foreign Taxes; $CDN). . . 17,000
Rental details from operation of two separate rental properties (both under class 1):
Property 1 Property 2
Gross rental revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000 $ 46,000
Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 8,000
Property taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,400 3,500
Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500 4,800
Mortgage interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 32,000
Opening UCC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $368,209 $520,225
Interest expenses paid during 2016:
Interest on bank line of credit used for investing in shares described above $50,000
Interest on loan to acquire an automobile for his daughter for her 18thbirthday . . . . . . . . . . . . . . . . 3,200
Interest on a parcel of vacant land (purchased in 2009, the land does notgenerate any income) . . 10,000
-REQUIRED
Prepare a calculation of John's property income for Taxation Year 2016. Comment on the income tax implications of itemsnot included in your calculations.