George Pharmacy is a pharmaceutical sales rep who has been very successful at his job in the last

few years. Unfortunately, his family life has not been very happy. Three years ago, his only child,

Anna, was driving a car that was hit by a drunk driver. She and her husband were killed and their

$14-$year$-$old son, Kevin, was blinded in the accident. He also suffered extensive injuries to his jaw

that have required major and prolonged dental work.

George and his wife, Valerie, adopted Kevin. Valerie quit her part$-$time job to care for him. She also

cares for her mother, Joan Drugstore, who lives with them. Joan suffers from dementia, Parkin$-$

son's, and severe depression. The family doctor has signed a letter stating that she is dependent

on George and Valerie because of her impairments. Joan does not meet the residency require$-$

ments necessary to qualify for Canadian OAS payments.

Valerie's parents separated two years ago in Scotland after her father, David Drugstore, suf$-$

fered enormous losses in the stock market. They were forced to sell their home and David

moved to Chile. David phones periodically to request that money be deposited in his online

bank account.

George's brother, Martin, completed an alcohol rehabilitation program after after his drinking

caused significant problems in his life. He is also living with George and Valerie while he is enrolled

as a full$-$time student at Western University. George is paying his tuition, and Martin has agreed to

transfer any available education$-$related amounts to George. Although Martin plans to file his $2022$

income tax return, he has not done so yet.

Kevin is taking several undergraduate psychology courses at Western University. After hearing

a talk given by an expert blind echolocator $($a person who uses sound to locate objects$),$ his

goal is to become a researcher at the Brain and Mind Institute and study the use of echoloca$-$

tion. Kevin has agreed to transfer the maximum tuition credit to George.

Other information concerning George for $2022$ is provided on the following pages.

Required: Prepare the $2022$ income tax return of George Pharmacy using the ProFile tax

software program assuming Valerie does not file an income tax return. List any assumptions

you have made and any notes and tax planning issues you feel should be placed in the file.

Ignore GST$/$HST implications in your solution by assuming that George does not qualify for the

GST$/$HST rebate.in a foreign affiliate or disposed of a principal residence in the year??

During September, David was arrested in Chile. Valerie had to spend three weeks in Chile and pay

$$2,000$ in bribes before she could get him released from jail. George had to pay Nannies On Call

$$3,500$ for in$-$home help to take care of Kevin while she was gone.In $2022,$ Mega reimbursed George $$3,788$ for meals and entertainment with clients, $$2,268$

for hotels, and $$4,925$ for airline tickets.

In addition to George's salary, he also earns commissions of $$82,000,$ which are included in the

employment income of $$378,000.$ His employer requires him to have an office in his home and has

signed the form T$2200$ each year to this effect.

On October $1,2022,$ George purchased a new computer and software that will be used solely in

his home office for employment use. The computer cost $$3,600$ and the various software pro$-$

grams cost $$1,250.$George paid $$800$ for the care and feeding of Kevin's seeing eye dog in $2022.$

At the beginning of $2022,$ George had a $2021$ net capital loss balance of $$10,500$ from the sale of

shares in $2021.$ He had not disposed of any capital property prior to $2020.$

The building and fixtures were purchased on August $28,2018$ At the time the building and

fixtures were being used as a drugstore and Mr$.$ Pharmacy has retained the same tenant.

George knows he should have been contributing to various savings plans over the years, but his

increasing number of needy dependants required he spend all of his take$-$home pay to support them

and he has not yet contributed to any savings plans. It was only in recent years that his

compensation had increased enough so that he had sufficient funds to consider savings plans for

the first time.

His daughter had made contributions totalling more than $$10,000$ to an RESP for Kevin prior to her

death, but George has made no RESP contributions to the plan since then.

George's $2021$ RRSP deduction limit is $$285,550.$ This is made up of unused RRSP

deduction room from $2021$ of $$256,340$ plus the addition of the maximum RRSP dollae limit

of $$29,210.$ Earned income for $2021$ was