Mr. Norman formally separated from his wife early in 2019. Custody of his three children,

Mr. Norman formally separated from his wife early in 2019. Custody of his three children, 

aged 18, 12 and 7

 was given to him as part of an agreement worked out with his wife in family court. 

To make a fresh start, 

effective March 31, 2019 he resigned his job in Toronto and took a position in Ottawa, about 400 kilometers away. 

He has come to you for help with the tax return, having correctly calculated his income under Subdivision a, b, and 

c of Division B as follows: Subdivision aSalary 

(from both employers in 2019) $75000

Taxable group term life insurance premium paid by 

both employers 550RPP – both employers (5100) $70450

Subdivision bBusiness income $8500

Property income:Net rental loss from apartment building (4500)

Grossed-up dividends from taxable Canadian public corporation 1250

Canada savings bond interest 600Interest on loan to buy shares (250) $5600

Subdivision 

cTaxable capital gains Sale of shares $6000Sale of cottage 5000

Sale of painting 500 $11500Total $87550Additional information(1) He had the following additional income during 2019:A-lump-sum payment out of he RPP of his former employer who had made vested $10000contributions transferred directly to his RRSP Retiring allowance from previous employer 20000(2) He made the following payments in 2019:RRSP contribution for 2019 (assume earned income in 2018 was the same as for 2019 and his pension adjustment for 2018 was $5000) 10000Legal fees: - Representation in family court $4500- Appealing a tax assessment, which he lost 1250 5750Charitable donation (consistent with prior year) 1250Maintenance payments for wife by virtue of agreement - Total of monthly payment for her maintenance 8000- Total of monthly payments directly to owner of her apartment 5000 13000$30000(3) Mr. Norman had net capital losses of $11466 in 2015, which he has not used(4) He has never had a capital gain or loss before, nor has he ever claimed any of capital gains exemption (5) He paid the following expenses for his children in 2019• food and clothing $ 6,500• babysitter for half days during 30 weeks of school term ($110 per week) 3,300•

 babysitter for full days during 15 weeks of summer and other vacations

 ($105 per week) 1,575$ 11,375(6) Move to Ottawa —unsuccessful trip to find accommodation• 

car expenses $ 50• hotel for two nights ($150 per night) 300• meals for three days ($30 per day) 90