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Question 1182997: You are in collections with CRA. As of April 30, 2019 you have an outstanding income tax debt of $52,000.
As a self-employed realtor, you continue to owe $20,000 in income tax each year.
Review the following personal/financial information and current household budget for your family and determine what/any revisions you will make to address the $52,000 tax debt within 12 months and adjust your budget to be able to pay $20,000 in income tax each year.
Using the attached information, create a budget to address your current and future tax obligations and explain how you will make the changes.
Personal/Financial information:
You are working as a self-employed realtor. Your net annual income is $90,000.
Your spouse works part time at Home Depot and has an annual net income $25,000.
You have 2 dependent children (A 10 year old boy and a 6 year old girl)
You own your home with approximately $150,000 in equity
You have 2 vehicles (A 2015 Audi A5 with 3 months left on the lease and a 2014 Dodge Caravan that you own)
You owe $13,000 on your Line of Credit and have a limit of $25,000
You owe $2,000 on your credit card and have a limit of $2,500.
You have RRSPs (Registered Retirement Savings) worth $40,000
You have a TFSA (Tax Free Savings Account) of $5000
You have RESPs (Registered Educational Savings) of $8,000
Answer by ikleyn(52903)   (Show Source):
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