Mr. Logan Diaz is 39 years old and is employed by a large public corporation with a December 31 taxation year end. In addition to his 2022 salary of $135,900, he earns commissions during the year of $42,700. Because of his excellent performance, he has been awarded a bonus of $21,900. One-half of this amount is payable in December 2022, with the balance being paid on July 15, 2023.

Withholdings on income

His employer withholds the following amounts from his employment income in 2022.

RPP Contributions$4,150EI953CPP3,500Professional Association Dues1,700Annual United Way Contributions, a registered Canadian charity2,600

Logan's employer makes a matching contribution to his RPP of $4,150.

Employment-related expenses

Logan's employer provides a monthly flat-rate allowance of $2,700 to cover all of his employment-related expenses, including the use of his personally owned automobile. This automobile was acquired in 2021 at a cost of $46,300. In that year, he claimed CCA based on the automobile being used 60% for employment purposes and 40% for personal use. In 2022, his employment-related use increases to 80%. For 2022, Property operation costs Logan's employer requires him to maintain an office in his home and has provided him with a signed Form T2200. The office occupies 12% of the livable floor space in his home, which includes a component for common areas. The 2022 home office expenses are as follows.

Mortgage Interest$7,300Insurance1,290Maintenance And Utilities1,400Property Taxes5,800

Logan's employment-related expenses are as follows.

Automobile Operating Expenses$6,400Hotels9,400Airline and Other Transportation5,450Client Meals and Entertainment8,800

Several years ago, Logan's employer granted him options to buy 500 shares of the company's stock at a price of $91 per share. This was the market value of the shares at the time the options were granted. In January 2022, when the shares are trading at $107 per share, Logan exercises all of the options. In December 2022, the 500 shares are sold for $114 per share.

Family information

Logan is married to Maya Diaz. She is 37 years old and has net income in 2022 of $6,100.

Now that her children are in their teens, Maya attends university on a full-time basis for eight months of the year. Her tuition for 2022 was $9,350. The family has two children, both born on April 1. Their son,

Gary, is 16 and has net income of $6,300 for 2022 from part-time summer jobs. Their daughter, Aika,

is 14 and qualifies for the disability tax credit. Aika has no net income for 2022.The family's medical expenses in 2022

are as follows.

Logan$1,410Maya3,375Gary2,400Aika (No Attendant Care Costs)10,300Total$17,485

Additional information

1.Logan owns a glass sculpture with an ACB of $700. In 2022, he sells the sculpture for $39,100.2.

Logan owns a cottage on a local lake. It cost $104,000, of which $43,000

was for the land and $61,000 for the building. While the family has made good use of the property, at the beginning of 2022 he decides to convert the cottage to a rental property. The FMV of the property is appraised at $354,000,

with $96,000 of this amount attributable to the land and $258,000 attributable to the building. In 2022, rental income before the deduction of CCA equals

$5,820. Logan does not intend to designate the cottage as his principal residence for any year.

3.

Logan owns 500 units of the CTP mutual trust fund. The ACB of the units on January 1, 2022, is $59.00 per unit. In 2022, the trust distributions total $2.50

per unit, with all this amount representing interest income. The entire distribution was reinvested in additional units on the basis of $60.50 per unit. In December 2022, Logan sold all the trust units for $60.25 per unit.

4.For several years, Logan has owned land with an ACB of $77,900. His intent was to eventually construct a rental property on this land. However, with the conversion of the cottage to a rental property, he decides to reduce his real estate holdings and sold the land for $185,400. The buyer provides an immediate payment of $58,000, with the balance payable in annual instalments of $18,200 beginning in 2023.5.In 2022, Logan received eligible dividends of $4,200.

Calculate Mr. Diaz's minimum net income, taxable income, and federal income tax payable for

2022. Ignore provincial income taxes, any instalments he may have paid during the year, any income tax withholdings that would be made by his employer, and GST/HST & PST considerations. Assume that the client meals and entertainment relate to overnight travel away from his employer's place of business.