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Homework answers / question archive / Profile Assignment Year 2020 George Smart is a self employed salesman who has been very successful at his job in the past few years
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:
SIN 499 499 499
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Commented [JC1]: |
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Date of Birth June 25, 1966
Marital status: Married
Canadian citizen YES
Provide information to Elections Canada YES
Own foreign property of more than $100,000 Cdn NO
Address: 150 Humber College Blvd, Toronto ON M1M1M1
Phone number 416-675-6612
SIN 994 994 994
Date of Birth Jan 18, 1969
Net Income T5 - Interest Income $5000
SIN 527 000 517
Date of Birth: Mar 22, 2015
Net income: NIL
SIN 517-000-483
Date of birth: Feb 10, 1940
Net Income: $maximum OAS, $3,000 CPP
SIN 527-000-533
Date of Birth: April 8, 1969
Net income: $9,500
Tuition fees paid for Humber College $6,000
No of mths in school full time 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.
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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
Work space in his home |
$500,000 |
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Home office |
650 sq feet |
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Total Home |
3000 sq feet |
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Heat |
$ 2,500 |
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Electric |
$ 1,000 |
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Insurance |
$ 500 |
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Repairs |
$ 2,000 |
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Mortgage payments |
$12,000 of which interest is $5,000 |
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Property taxes |
$ 4,000 |
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Water |
$ 300 |
Gas/oil $ 6,000
Repairs $ 1,300 License $ 200
Insurance $ 1,200
Cost of vehicle purchased on Mar 1 $45,000
Personal Km’s driven 12,000
Business Km’s driven 20,000
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
Mothers against drunk drivers $ 1,000
Canadian Cancer society $ 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 $ 19,000
Property taxes $ 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:
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Description Maple Leaf shares |
Imperial Oil Shares |
Antique Car Painting |
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Number of units 150 |
387 |
n/a n/a |
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Year of acquisition 2012 |
2013 |
2013 2008 |
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Date of disposition Feb 14 |
June 6 |
Oct 1 Aug 28 |
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Proceeds of disposition $38,000 |
$9,500 |
$72,000 $1,100 |
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Adjusted cost base $27,500 |
$12,150 |
$74,000 $450 |
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Selling expenses $500 |
$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.
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.
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Issuer |
CIBC Power Corporation |
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Actual amount of eligible dividends |
nil $ 1,000 |
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Taxable amount of eligible dividends |
nil $ 1,380 |
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Interest
Medical expenses: |
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$ 575 nil |
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Date Individual |
Company |
Type of expense |
Amount |
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June 5 GEORGE |
Dr Jones |
dental expense |
$ ,500 |
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July 6 JUDY |
Shoppers Drug Perscriptions |
$ ,300 |
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Aug 12 PAUL |
Dr Jones dental expense |
$ 1,000 |
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Sept 10 GEORGE |
Dr Sanders Pshyio |
$ 900 |
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Oct 10 SUSY |
Dr Jones dental expense |
$ 300 |
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Dec 12 PAULA |
Shoppers New wheelchair |
$ 2,500 |
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George paid $800 for the care and feeding of Paul’s seeing eye dog, Buster, during the year.
Please print in PDF format the following:
T1 jacket for George and Judy Smart
T1 summary for each
T776 Rental schedule
T2125 Business Schedule
