Instructions: Prepare one 2022 Income Tax and Benefit return for each of the following taxpayers
(married couple) using ProFile software. Show all of your work (and any calculations performed) in a
separate document (either in word or excel).
Taxpayer 1: Chase Verton
SIN:	303226700
Address:	3032	Caughton Way, Edmonton, AB T6N 1Y2
Phone Number:	(780) 423-1234
DOB:	March 11, 1980
Martial Status:	Married to June Verton
Resident of Alberta
Canadian citizen and would like to provide information to Elections Canada
Foreign Property:	None
Dependants:		Job Verton (son)		DOB:	August 12, 2010
(no SIN's)		Candice Verton (daughter)		DOB:	April 2, 2014
Chase received the following sources of income during the year:
	Dividends from Alliance Corp. (a private corporation) =			$ 3,032
	Interest from TD Bank =					$ 1,011
Chase has an unincorporated business called, "Verton Taxidermy", which he operates from his
home in Alberta. The industry code for this business is 339990 and the account number is 876594231.
During the current year, Chase earned gross revenue of		$ 101,076	in his business, Verton
Taxidermy in the current year. His business incurred the following expenses for accounting purposes:
	Professional fees (Note 1)			$ 5,306
	Advertising (Note 2)			$ 3,538
	Insurance (Note 3)			$ 2,022
	Interest and bank charges (Note 4)		$ 1,263
	Business meals (Note 5)			$ 5,408
	Office supplies (Note 6)			$ 2,365
	Telephone, internet and fax (Note 7)		$ 3,487
	Travel expenses (Note 8)			$ 9,269
Notes:
1	Fees paid to an accountant to help Chase organize and compile his business income and
	expense information.
2	Advertising includes the following:
		Golf Club membership dues		$ 1,011
		Advertising in local hunting magazine		$ 2,527
3	Insurance expense includes the following:
		Insurance premiums - business insurance	$ 505
		Insurance premiums - life insurance for Chase	$ 1,516
	The life insurance for Chase was required by the bank before providing the business with
	a loan.
4	Interest and bank charges relate to the business loan (see above) and business bank
	account. Also included in this balance is interest on late GST filings of		$ 526
5	The meals expense relates to business meals that Chase had with his customers and
	suppliers during the year.
6	Included in office supplies is the purchase of a laoptop computer on June 1 of the current
	year for	$ 2,022	.
7	The total cost of Chase's business cell phone for the current year. This cell phone is used
	100% for business purposes.
8	Included in travel expenses is		$ 2,527	for a personal vacation Chase took with his
	wife, June, to Alaska.
Chase operates his business out of the basement of his home. The basement is used exclusively for
Verton Taxidermy. The basement has a square footage of		1,061	and the total square
footage of the Verton's home is	2,780	. The following is a list of the Verton's home expenses:
	Gas (for heating)		$ 1,733
	Hydro (electricity)		$ 1,658
	Insurance for home		$ 859
	Mortgage Interest		$ 7,530
	Mortgage principal payments		$ 1,263
	Property taxes		$ 2,527
Other Information: During the current year, Chase made tax instalments of	$ 159	every
month during the calendar year.
Taxpayer 2: June Verton
SIN:	606453400
DOB:	May 18, 1983
Resident of Alberta
Canadian citizen and would like to provide information to Elections Canada
Foreign Property:	None
June received the following sources of income during the year:
Employment income from Maximum Health Co.: According to June's pay statements she has earned
gross salary of		$ 50,538	and had maximum CPP and EI withheld from her pay in addition
to income tax of	$ 10,108	deducted during the current year. Maximum Health Co. provides
June with the following employment benefits (in addition to her salary):
	(a)	A company car is provided all year. The original cost of the car was		$ 29,312
		(including GST) but its depreciated value on January 1 of the current year is
		$ 20,215	. During the year, Maximum Health Co. paid	$ 6,873	in
		operating costs for the vehicle. June drove the vehicle		26,280	kilometers
		in the current year, of which	12,614	were for personal purposes.
	(b)	Alberta Blue Cross premiums paid in the year of		$ 960
	(c)	Life insurance premiums paid in the year of	$ 480
	(d)	June was required to pay for parking at work, which cost		$ 2,022	for the
		entire year.
Other Information:
June's prior year T1 indicates the following RRSP information:
	Unused RSP deduction room on December 31 of the prior year:		$ 10,108
	Prior year earned income:					$ 55,592
On December 21 of the current year, June made an RRSP contribution to her RRSP plan at BMO bank of
$ 13,032	.
June attended MacEwan University on a part-time basis during the current year for 4 months. She paid
tuition fees of		$ 2,729	to MacEwan in the current year. June also received a scholarhip
from the Chartered Professional Accountants (CPA) of Alberta to help pay for her secondary education
tuition at a designated educational institution for	$ 1,516	.
During the year, Chase and June paid their babysitter, Suzie Smith (SIN 553 211 545) to care for their
children after school for 35 weeks out of the year. Suzie charged Chase and June		$ 4,831	per
child for the babysitting services.
Chase and June jointly own a rental property located at 123 Sprinfield Avenue, Edmonton, AB T4R 3N7.
The rental building was originally purchased in 2018 for		$ 136,452	. As at December 31 of the
prior year, the undepreciated capital cost of the rental building is		$ 106,609	. For the
current year, Chase and June provide you with the following information:
	Gross rents			$ 25,269
	Property tax			$ 3,234
	Insurance			$ 2,729
	Mortgage payment		$ 9,198
	Mortgage interest (included above)	$ 6,898
	Repairs and maintenance		$ 1,112

This is all the information provided to me.

Answer rating: 100% (QA)

To prepare the income tax return for Chase and June Verton for the year 2022 well need to gather all the necessary information provided and organize it into the appropriate tax forms Taxpayer 1 Chase ... View the full answer