Question

Every year Marie is concerned about having to repay the Old Age Security (OAS) pension that she receives. This is very stressful as she is on a very limited budget. She knows that if her income is over a certain amount, that she has to repay a large lump sum back through her tax return. In 2020, the OAS clawback or repayment calculation is based on the difference between Marie’s net income and the threshold amount for the year. If her income is over the threshold amount, then she must repay 15% of that amount. Marie’s monthly OAS pension is $613.54 for 2020 and her net income is $105,000.

a) Determine if Marie will have to repay her OAS and if so, calculate the amount that Marie will get to keep.

Marie’s calculation: Mini-Case C: - Lizzie Assume Lizzie purchased 1,000 shares of Bubblegum Inc. for a total of $5,300. She later decides to sell 700 shares once it has risen to $9.00. Calculate her capital gain and her taxable capital gain. Calculation of the capital gain: (1 mark) Calculation of the taxable capital gain: (1 mark)

Answer 1