Mr. George Pilot (SIN 527-000-145) is a married, semi-retired air force pilot living in Banff, Alberta. His wife, Mrs. Deborah Pilot (SIN 130-692-544) was mauled by a grizzly bear while hiking 3 years ago. The attack left her blind and limited her mobility. [INFO]

[For Deborah: select "YES" to Claim Disability Amount]

They have been your clients for many years. George was born on February 24, 1968 and Deborah was born on April 10, 1972. They are both Canadian citizens. [INFO]

After some discussion with George and Deborah, you confirm that they have never owned any foreign property. They both authorize the CRA to provide information to Elections Canada and authorize you to e-file their returns. They are currently living at 69 BBB Street in Banff, Alberta T9Z 0C0. Their home phone number is (403) 111-1111. [INFO]

George has a passion for flying and was hired in February to fly fire bombers June 1 to September 30 for the provincial forest service fire control squad located in Banff.

Deborah, a voice teacher, adapted to her blindness quickly. During 2023, Deborah gave voice lessons part-time at Siren Sounds Ltd. She had misplaced her T4 slip but had recorded that Box 14 for Employment income was $6,700, Box 16 for CPP was $190.40, Box 18 for EI was $109.21, and Box 22 for Income Tax Deducted was $500. [T4 – Deborah]

George brings you the following receipts and documents:

1. Tax slip for T4 (see slip provided). [T4 - George]

Box 14 (Employment Income): $19,000, Box 16 (CPP Contribution): $922.25, Box 18 (EI Contribution): $309.70, Box 20 (RPP Contribution): $900.00, Box 52 (Pension Adjustment): $1,800, Box 22 (Income Tax Deducted): $2,000, Box 44 (Union Due): $110.00

1. A T2202A "Tuition And Enrollment Certificate" for himself from Athabasca University. It showed he was a part time student for 6 months and paid $591 in tuition for 2023. [T2202]

1. Two charitable donation receipts. One in George's name for $1,000 from the Canadian Wildlife Federation dated April 10, 2023. A second receipt in Deborah's name for $100 from the Canadian National Institute for the Blind (CNIB) dated December 3, 2023. [Donations]

1. A statement from the Banff Dental Clinic that George paid a total of $1,650 during 2023. This consisted of $850 for himself on November 24, and $800 each for Deborah on December 15. [Medical]

1. An invoice from the CNIB in Deborah's name for $375 dated December 26, 2023 for computer peripherals designed exclusively for a person who is blind to use a computer. She had obtained a prescription from her doctor specifying her need for this equipment. [Medical]

1. George hired Mobility Co. for $14,700 during 2023 on various permanent modifications to the house. His goal for these changes was to allow Deborah to be more mobile inside and outside the house (ex., outside ramps and railings in the halls and stairways) and to reduce the risk of harm to her (a walk-in bathtub). George has detailed invoices for the renovations. Since Deborah's mobility impairment is not severe, these expenditures do not qualify as allowable medical expenses. [OtherCredits – Home Accessibility Expenses]

1. A purchase agreement for a house at 69 BBB St. in Banff. The purchase price was $800,000 and the invoice for legal fees totalled $1,200. The deal closed March 31, 2023 and George paid the purchase price of the house in cash. George and his family had been living in a rented townhouse for the last 5 years. Prior to that George had owned a house, but it went to his ex-wife in the divorce settlement. Deborah has never owned a principal residence. [OtherCredits - Home Buyers' Amount.]

1. A T2202A "Tuition And Enrollment Certificate" for Deborah from the University of Alberta. It showed she was a full time student for 4 months and paid $2,600 in tuition for 2023. [T2202]

1. His 2022 Notice of Assessment that shows that his 2023 RRSP Deduction Limit is $13,979. He has no undeducted RRSP contributions from previous years. [RRSP]

1. A contribution receipt to George's own RRSP for $2,000 from $$$$ Inc. dated May 20, 2023. [RRSP]

1. George's transaction summary statement from $$$$ Inc. for 2023 lists the details of sales of stock in George's trading account. The total result, are proceeds of $10,000 and an ACB of $5,500. [S3Details]

1. On January 8, 2023, George sold his 1971 Ford Mustang for $50,000. The car was driven only on sunny Sunday afternoons. Its original price in 2001 was $6,000, and George reconditioned it over the years at a cost of $12,000. [S3Details]

1. George owns a property at 999 JJJ Avenue, Edmonton, Alberta T9Z 0C0. He rents out the property to commercial owners. No capital additions or any CCA claimed were made since the building's acquisition. The financial information for the property, for the year ended December 31, 2023, is as follows [T776]:

Rental income $49,700

Mortgage interest $19,500

Maintenance and repairs 5,100

Management and administration fees 8,200

Legal fees 1,500

Property taxes 11,750

Total expenses $46,050

Net Income before amortization $ 3,650

1. In Calgary in prior years, George gave the occasional private flying lesson and found it very rewarding. After moving to Banff, he began to pursue private pilot training in earnest beginning April 1 through his business, Pilot's Flying School. A portion of his new house is used exclusively for various training activities such as one-to-one ground instruction. He also writes and reviews practice pilot exams. He keeps all records of the business at his home address. Industry code is 611510. George's fiscal year end for the business is December 31. [T2125]

The business area of the house occupies 420 square feet of the 2,100 square foot house. George does not intend to claim any CCA on the house. At your request he provides the following costs related to the house during the period April 1, 2023 through December 31, 2022 [T2125]:

Electricity $1,500

Repairs & Maintenance 4,325

Home Insurance 700

Mortgage Interest 7,600

Property Taxes 2,600

1. On April 15, 2023, George purchased a laptop computer and other various program software that will be used solely for his business activities. The laptop cost $1,900 and the software costs totalled $800. Prior to this, George had not been using a computer for business purposes. [T2125asset]

1. George provides the following other information for Pilot's Flying School, for the fiscal period ended December 31, 2023:

Lesson and training fee received (income) $50,200

Plane rental fees 9,600

Business meals with clients 3,450

Licenses and fees 1,650

Office expenses 600

Accounting fees 400

Required: Complete George's and Deborah's 2023 tax return, assuming he does not elect to pension income split. Ignore any GST/HST implications.

Answer rating: 100% (QA)

George and Deborah Pilot Tax Return 2023 Income George Employment income 19000 Fire bomber income Ju... View the full answer