George Smart is a self employed salesman who has been very successful at his job in...

Transcribed Image Text:

George Smart is a self employed salesman who has been very successful at his job in the past few years. Unfortunately, his family life has had some challenges. George and his wife Judy, adopted their grandson, Paul, after a tragic accident which left Paul without his parents. Paul is blind, and also has major health problems. Judy is not working at the present time, she cares for Paul, as well as her mother, Paula, who also lives with them. Paula suffers from severe depression. Paula's family doctor has signed a letter stating that she is dependent on George and Judy, because of her mental impairment. George's sister Susy, completed an alcohol rehabilitation program after being fired for drinking on the job. She is also living with George and Judy while she is enrolled as a full time student at Humber College. Susy pays for her own tuition but Susy wants to transfer any available education related amounts to George. Personal Information: Mr George Smart SIN Date of Birth 499 499 499 June 25, 1976 Marital status: Canadian citizen Married YES Provide information to Elections Canada Own foreign property of more than $100,000 Cdn Address: Phone number Spouse Judy Smart SIN Date of Birth Net Income Child: Grandson Paul SIN Date of Birth: Net income: YES NO 150 Humber College Blvd, Toronto ON M1M1M1 416-675-6612 994-994-994 Jan 18,1979 TS Interest Income $5000 - 527 000 517 Mar 22, 2018 NIL Mother in law: Paula Small SIN Date of Birth Net Income Sister: Susy Smart 517-000-483 Feb 10, 1940 $maximum OAS, $3000 CPP SIN Date of Birth: Net income: Susy's Tuition fees (T2202A) Tuition fees paid for Humber College No of mths in school full time 527-000-533 April 8, 1969 $9,500 $6,000 6 During the year, Susy was arrested in Mexico, Judy had to spend five weeks in Mexico and $2,000 in legal fees to get her released from jail. George had to pay Nannies on Call $4500 for in home help to care for Paul while Judy was gone. Self employment: Smart Company, year end December 31, 2022 $500,000 Total Sales (Cash and accrual) Expenses: Opening inventory $15,000 Purchase $200,000 Direct labour $100,000 Closing inventory $20,000 Office supplies $12,500 Insurance $5,000 Life insurance $3,000 Rent $20,000 Telephone $5,000 Bank chgs & Interest $4,500 Eqiupment lease $5,800 Professional fees $6,000 Golf club dues $2,800 Meals & Entertainment $9,500 During the year George purchased a new computer and software that was used solely for business related purposes. The computer cost $1,500 and the software programs cost $1,500 Work space in his home Home office Total Home Heat Electric Insurance 650 sq feet 3000 sq feet $2,500 $ 1,000 $ 500 Repairs Mortgage payments Property taxes Water $ 2,000 $12,000 of which interest is $5,000 $ 4,000 $ 300 Car expenses that George incurred during the year Gas/oil Repairs License Insurance Cost of vehicle purchased on Mar 1 Personal Km's driven Business Km's driven $ 6,000 $ 1,300 $ 200 $ 1,200 $45,000 12,000 20,000 Charitable donations contributed during the year Mothers against drunk drivers Canadian Cancer society $1,000 $ 2,000 George and Judy own a rental property - the income and expenses are as follows: Address: 199 Happy Avenue, Toronto, ON M1P 1R6 Purchased in 2010 for $400,000. No CCA has ever been claimed on this property. Rental income received Property taxes $19,000 $ 5,000 Insurance $ 1,850 Interest on mortgage $ 4,175 Principal mortgage pmts $ 2,200 Repairs $ 1,800 Maintenance contract $ 900 George sold the following assets during the year: Description Number of units Year of acquisition Maple Leaf shares 150 2012 Date of disposition Feb 14 Proceeds of disposition $38,000 Adjusted cost base $27,500 Selling expenses $500 Imperial Oil Shares 387 2013 Antique Car Painting n/a n/a 2013 2008 June 6 $9,500 Oct 1 Aug 28 $72,000 $1,100 $12,150 $74,000 $450 $450 n/a n/a At the beginning of the year, George had a net capital loss carryforward of $10,500 from the sale of shares in 2014. RRSP George made a spousal contribution to Judy's RRSP during the year, of $5,000, George's RRSP contribution limit for the current year, is $12,500. He has undeducted RRSP contributions carried forward of $1,000. Judy's contribution limit is $3,500. Prepare tax returns in Profile software, when complete, save as a PDF file and email it to me. George Smart is a self employed salesman who has been very successful at his job in the past few years. Unfortunately, his family life has had some challenges. George and his wife Judy, adopted their grandson, Paul, after a tragic accident which left Paul without his parents. Paul is blind, and also has major health problems. Judy is not working at the present time, she cares for Paul, as well as her mother, Paula, who also lives with them. Paula suffers from severe depression. Paula's family doctor has signed a letter stating that she is dependent on George and Judy, because of her mental impairment. George's sister Susy, completed an alcohol rehabilitation program after being fired for drinking on the job. She is also living with George and Judy while she is enrolled as a full time student at Humber College. Susy pays for her own tuition but Susy wants to transfer any available education related amounts to George. Personal Information: Mr George Smart SIN Date of Birth 499 499 499 June 25, 1976 Marital status: Canadian citizen Married YES Provide information to Elections Canada Own foreign property of more than $100,000 Cdn Address: Phone number Spouse Judy Smart SIN Date of Birth Net Income Child: Grandson Paul SIN Date of Birth: Net income: YES NO 150 Humber College Blvd, Toronto ON M1M1M1 416-675-6612 994-994-994 Jan 18,1979 TS Interest Income $5000 - 527 000 517 Mar 22, 2018 NIL Mother in law: Paula Small SIN Date of Birth Net Income Sister: Susy Smart 517-000-483 Feb 10, 1940 $maximum OAS, $3000 CPP SIN Date of Birth: Net income: Susy's Tuition fees (T2202A) Tuition fees paid for Humber College No of mths in school full time 527-000-533 April 8, 1969 $9,500 $6,000 6 During the year, Susy was arrested in Mexico, Judy had to spend five weeks in Mexico and $2,000 in legal fees to get her released from jail. George had to pay Nannies on Call $4500 for in home help to care for Paul while Judy was gone. Self employment: Smart Company, year end December 31, 2022 $500,000 Total Sales (Cash and accrual) Expenses: Opening inventory $15,000 Purchase $200,000 Direct labour $100,000 Closing inventory $20,000 Office supplies $12,500 Insurance $5,000 Life insurance $3,000 Rent $20,000 Telephone $5,000 Bank chgs & Interest $4,500 Eqiupment lease $5,800 Professional fees $6,000 Golf club dues $2,800 Meals & Entertainment $9,500 During the year George purchased a new computer and software that was used solely for business related purposes. The computer cost $1,500 and the software programs cost $1,500 Work space in his home Home office Total Home Heat Electric Insurance 650 sq feet 3000 sq feet $2,500 $ 1,000 $ 500 Repairs Mortgage payments Property taxes Water $ 2,000 $12,000 of which interest is $5,000 $ 4,000 $ 300 Car expenses that George incurred during the year Gas/oil Repairs License Insurance Cost of vehicle purchased on Mar 1 Personal Km's driven Business Km's driven $ 6,000 $ 1,300 $ 200 $ 1,200 $45,000 12,000 20,000 Charitable donations contributed during the year Mothers against drunk drivers Canadian Cancer society $1,000 $ 2,000 George and Judy own a rental property - the income and expenses are as follows: Address: 199 Happy Avenue, Toronto, ON M1P 1R6 Purchased in 2010 for $400,000. No CCA has ever been claimed on this property. Rental income received Property taxes $19,000 $ 5,000 Insurance $ 1,850 Interest on mortgage $ 4,175 Principal mortgage pmts $ 2,200 Repairs $ 1,800 Maintenance contract $ 900 George sold the following assets during the year: Description Number of units Year of acquisition Maple Leaf shares 150 2012 Date of disposition Feb 14 Proceeds of disposition $38,000 Adjusted cost base $27,500 Selling expenses $500 Imperial Oil Shares 387 2013 Antique Car Painting n/a n/a 2013 2008 June 6 $9,500 Oct 1 Aug 28 $72,000 $1,100 $12,150 $74,000 $450 $450 n/a n/a At the beginning of the year, George had a net capital loss carryforward of $10,500 from the sale of shares in 2014. RRSP George made a spousal contribution to Judy's RRSP during the year, of $5,000, George's RRSP contribution limit for the current year, is $12,500. He has undeducted RRSP contributions carried forward of $1,000. Judy's contribution limit is $3,500. Prepare tax returns in Profile software, when complete, save as a PDF file and email it to me.

Answer rating: 100% (QA)

Heres an overview of the information you would need to consider Personal Information Include the personal information of each individual including the... View the full answer