This problem is continued in Chapter 11 with Tax Software AP 11-2 (Chapter 11 is in Volume 2). DISCLAIMER: All characters appearing in this problem are fictitious. Any resemblance to real persons, living or dead, is purely coincidental. 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, Parkinson'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 requirements necessary to qualify for Canadian OAS payments. Valerie's parents separated two years ago in Scotland after her father, David Drugstore, suffered 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 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 tax credit to George. Although Martin plans to file his 2021 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 echolocation. Kevin has agreed to transfer the maximum tuition credit to George. Other information concerning George for 2021 is provided on the following pages. Required: With the objective of minimizing George's income tax payable, prepare the 2021 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. 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. \begin{tabular}{|l|c|r|} \hline T2202A (Martin) & Box & Amount \\ \hline Tuition fees for Martin Pharmacy (brother) & A & 8,000 \\ \hline Number of months in school-part time & B & 0 \\ \hline Number of months in school-full time & C & 8 \\ \hline \end{tabular} \begin{tabular}{|l|c|r|} \hline T2202A (Kevin) & Box & Amount \\ \hline Tuition fees for Kevin & A & 3,600 \\ \hline Number of months in school-part time & B & 8 \\ \hline Number of months in school-full time & C & 0 \\ \hline \end{tabular} \begin{tabular}{|l|l|r|} \hline \multicolumn{1}{|c}{ Donor } & \multicolumn{1}{c|}{ Charitable Donation Receipts } & Amount \\ \hline Valerie & Mothers Against Drunk Drivers (MADD) & 1,000 \\ \hline George & Canadian Institute for the Blind (CNIB) & 3,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|r|} \hline T4 & Box & Amount \\ \hline Issuer-Mega Pharma Inc. & & \\ \hline Employment income & 14 & 378,000.00 \\ \hline Employee's CPP contributions & 16 & 3,166.45 \\ \hline Employee's El premiums & 18 & 889.54 \\ \hline Income tax deducted & 22 & 114,000.00 \\ \hline Employment commissions & 42 & 82,000.00 \\ \hline Charitable donations & 46 & 400.00 \\ \hline \end{tabular} In 2021, 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. His employer requires him to have an office in his home and has signed the form T2200 each year to this effect. On October 1, 2021, George purchased a new computer and software that will be used solely in his home office for employment-related uses. The computer cost $3,600 and the various software programs cost $1,250. George paid $800 for the care and feeding of Kevin's seeing eye dog, Isis, in 2021. George's 2021 RRSP deduction limit is $285,550