Case Study ITFO May 13, 2021

Prepare the spouses income tax return for the year 2020 using Profile Tax (all Alberta residents).

Mr. Roger Ricks (DOB January 31, 1969 SIN616282935) and his spouse, Helen (DOB January 30, 1974 SIN616292835) share 50/50 in the rental income. Helen had medical expenses of $2,100.

Rogers Tslips are as follows:

T4		T4A		T5007
Box 14	60,000	Box 18	2,500	Box 10	3,210
Box 16	2898	Box 22	250
Box 18	856.36
Box 22	21,681
Box 24	54,200
Box 26	58,700

RRSP contributions of Roger:

Between March 5 to December 31, 2020 - $9,000

Between January 1 and February 26, 2021 - $1,000

RRSP deduction limit for 2020 - $45,000

The rental property income details are as follows:

Rental Income $ 35,000

UCC of the rental property 210,000 Class 3

Condo Fees 3,850

Maintenance Expenses 3,200

Fire Insurance 1,500

Transportation expenses 550

Property Tax 1,400

Mortgage Interest 3,000

Helen will not claim CCA on the rental property.

Roger has a painting business and details in 2020 are as follows:

Painting income $ 55,000

Painting materials used 20,550

Advertising 1,000

Office supplies used 800

Professional fee (Accountant) 2,000

New Desktop 2,000 Class 52 acquired January 5, 2020

New Printer/Fax machine 500 Class 52 acquired January 5, 2020

Gas receipts 8,000

Personal Kms. driven in 2020 12,000

Business Kms. driven in 2020 26,000

Car maintenance:

Oil change, tires, etc. 1,100

Motor vehicle insurance 2,400

Painting Equipment, Compressor UCC 18,200 Class 8

Roger sold in May 2020 an old compressor class 8 acquired in March 2010 for $7,000. The adjusted cost base was $3,000.

Home utilities:

Heat 4,600

Electricity 5,600

Maintenance 2,000

Property tax 2,300

Mortgage interest 800

Insurance 1,500

Roger used 2 of his houses 5 rooms as business office.

Submit by email today:

1. T1 General of Roger and Helen
2. T2125 of Roger
3. T776 of Helen