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Profile Assignment Year 2021 George Smart is a self employed salesman who has been very successful at his job in the past few years

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Profile Assignment Year 2021

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: Married

Canadian citizen YES

Provide information to Elections Canada YES

Own foreign property of more than $100,000 Cdn NO

Address:

Phone number

Spouse Judy Smart

SIN

Date of Birth

Net Income

Child: Grandson Paul

SIN

Date of Birth:

Net income:

150 Humber College Blvd, Toronto ON MlMlMl

416-675-6612

994-994-994

Jan18,1979

TS - Interest Income $5000

527 000 517

Mar 22, 2017

NIL

Mother in law: Paula Small

SIN

Date of Birth

Net Income

Sister: Susy Smart

SIN

Date of Birth:

Net income:

Susy's Tuition fees (T2202A)

517-000-483

Feb 10, 1940

$maximum OAS, $3000 CPP

527-000-533

April 8, 1969

$9,500

Tuition fees paid for Humber College

No of mths in school full time

$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, 2021

Total Sales (Cash and accrual) $500,000

Expenses:

Opening inventory

Purchase

Direct labour

Closing inventory

Office supplies

Insurance

Life insurance

Rent

Telephone

Bank chgs & Interest

Eqiupment lease

Professional fees

Golf club dues

$15,000

$200,000

$100,000

$20,000

$12,500

$5,000

$3,000

$20,000

$5,000

$4,500

$5,800

$6,000

$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

 

George sold the following assets during the year:

Description Maple Leaf shares Imperial Oil Shares Antique Car Painting

Number of units 150 387 n/a n/a

Year of acquisition 2012 2013 2013 2008

Date of disposition Feb 14 June 6 Oct 1 Aug 28

Proceeds of disposition $38,000 $9,500 $72,000 $1,100

Adjusted cost base $27,500 $12,150 $74,000 $450

Selling expenses $500 $450 n/a n/a

At the begirnning 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.