Eleven-1 Buddy's Musician's 2018 Return

Looking for help to list any assumptions, notes and tax planning issues. Need to complete this tax return on a ProFile system and don't know where to start!

500 costa 170.000 de tener what MM cs Man 7000 Macho wwm D 27-6000 BC. Th.2, Wed M Buy Browser w the Mode On Decem 220 M. Med deres to anal Wide Clinic to H 51200 w 100 300 30 Low 200 Door mother of two 573 Megan Nusa Dua 10 server for 2010 care se more Tax Software Assignment Problems TP. This not the Char problem DECLAIMER thomas Any Buty wo 1059 and on www MOTE 1.000 tonn 1994 She MM Ebom of the owner Linde 2012 only coming 2013 200 m 6 M Musicians with Freeon S. 200 into the wonder contando 1 st om they would wanng the show The cow.cohort og vamente penge Med out wit1.000 do 4000 for 2010 Von dos homeCRA dacht on the M cha SIN$27000 25 w bors 3000 how to use out 2017 indiretto Dedy Manson M Mancing Security and son Palement betwer12. There was not shown as Media TP Me Muschettone the newestione home order to face the toxitus Sand windom HTARSP showed 62.000 strom the House Rock Band 2nd toto $15.000 deducted from payment 10 Selo Mi Muscan's songs, nadghis outstando o Me Jesus through The Goal Pos Ofta provider with over the years women they bone 588 Chapter 11 Por outware Agent Pro was issued by the company ta be ou Re WE an tig contributions on his self-employed income In 2012 the Never Say Die Record Company paid him $78,000 in royalty payments. Not 11. In order to ensure the financial security of his family, Mr. Musician decided to return to song and purchased a Roland electric piano for $2750 that was delivered there. He does not clan writing in earnest On November 1, 2019, he rented a small, quiet studio for $700 a month 12. The pres you an lanuary 2 2018 M. Musician elected not to make any further CP to use the space or ano for personal enjoyment, only for composing. 13 M. Musician is required by a court order to pay spousal support of $400 per month to his former spouse, Lon Musician Mr. Musician made spousal support payments of SA 8000 14. M Musician is required by a court order to make child support payments of $350 per month to Doly Nurse for his two children, Megan and Andrew Nurse. A total of $4,200 was ad 15 M Musician made contributions to the federal Liberal Party in the amount of $610 during 16. Mr Musican made a $5,000 contribution to his TFSA during the year. Thanks to the excellent Investing advice of his gardener, the balance in his TFSA account has grown to more than 2019 income tax return using the ProFile tax software program assuming Natasha does not to Required: With the objective of minimizing Mr. Musician's Tax Payable, prepare Mr. Musicians a tax return List any assumptions you have made and any notes and tax planning issues you feel ing 2019 during the year F the year $175,000 by the end of the year should be placed in the file. In both Part A and Tax Software Assignment Problems Tax Software Assignment Problem Eleven - 1 This problem is an expansion of the Chapter 4 problem. DISCLAIMER: All characters appearing in this problem are fictitious. Any resemblance to real persons, living or dead, is purely coincidental. Mr. Buddy Musician (SIN 527-000-061) was born in Vancouver on August 28, 1952. He has spent most of his working life as a pianist and song writer. He and his family live at 111 WWW Street, Vancouver, B.C. V4H 3W4, phone (604) 111-1111. Mr. Musician's wife, Natasha (SIN 527-000-129), was born on June 6, 1994. She and Mr. Musi: cian have four children. Each child was born on April 1 of the following years: Linda, 2014 ; Larry 2015; Donna 2016; and Donald, 2017. Natasha's only income during 2019 is $3,200 from singing engagements Buddy and Natasha Musician have two adopted children. Richard (SIN 527-000-285) was born on March 15, 2002, and has income of $2,800 for the year. Due to his accelerated schooling, he started full time attendance at university in September of 2019 at the age of 17. His first semes. ter tuition fee is $3,000 and he requires books with a total cost of $375. These amounts are paid by Mr. Musician. The other adopted child, Sarah, was born on September 2, 1999 and is in full time attendance at university for all of 2019 (including a four month summer session). Her tuition is $9.600 and she requires textbooks that cost $750. These amounts are also paid by Mr. Musician. Sarah has no income during the year. Neither Richard nor Sarah will have any income in the next three years. They both have agreed that the maximum tuition amount should be transferred to their father. dor ve ar san lowing individuals ment Problems M Music's mother Eunice, was bom on April 10. 1932. and his father. Er was bomo er 16. 1830. They both live with Me Musician and his wife: While his father has some mai sus, he is not infirm. His mother is legally blind Eunice Musica had income of 25 for the you while eart Musician had income of $7500 Omer information concerning Mt Musican and his family for 2019 is as follows Mc Music med $16.500 for work as the house pianist at the Loose Moose Pub. His T4 showed that his employer withheld $500 for income taxes and 525730 for EL NO CPP was wild as he has previously filed an election to stop contributing to the CPP During the year Mr Musician made his annual 3.000 donation to Planned Penthood Ot Cand registered Canadian chanty 3 Mc Musician has been manied before to Loti Musician SIN 527-000-3191. Lonis 52 years old and ves in Fort Erie, Ontario M Musician has two additional Children who live with the mother, Ms Doly Nurse ISIN 52-000-5821, in Burnaby British Columbia. The children are Megan Nurse, aged 12. and Andrew Nurse, aged 14 Neither child has any income during 2019. While Ms. Nurse and children Although Buddy has provided limited financial sidby paying their dental and med Mc Musican were never married M Musician acknowledges that he is the father of both cal expenses, the children are not dependent on Buddy for support 5 M Musician wishes to claim all his medical expenses on a calendar year bas15. On Decem- ber 2 2019, Mr Musician paid dental expenses to Canada Wide Dental Clinics for the fol Himself Natasha (wife) $1.200 Richard (adopted son) 700 Sarah (adopted daughter 800 300 Linda (daughter 100 Earl father) 1,050 Lori (ex-wife) 300 Dolly Nurse mother of two of his children 675 Megan Nurse daughter of Dolly Nursel 550 Total $5,675 & Me Musician signed a contract with Fred Nesbitt on January 13, 2019, to do permanent modifications to his house. The contract was for the installation of ramps with sturdy hand talings outside his front and back doors to give his parents easier access to the house and modifications to their bathroom so they would be less likely to fall when using the shower The contract price was $5,800. As neither of his parents has a severe and prolonged mobil- ity impairment, these expenditures are not eligible medical expenses. 7 Mr. Musician paid four quarterly instalments of $1,000 each (total of $4.0001 for 2019. as requested on his Instalment Reminders from the CRA He paid each instalment on the due date 8 Mr Musician receives $727167 in Old Ago Security payments and $5,500 in Canada Pen sion Plan "retirement benefit payments over 12 months. There was no tax shown as with held on his T4A(OAS) or his T4AIP 9. Mr. Musician builds a state-of-the-art home theatre in a new extension of his home. In order to finance it , he sells stock in his RASP and withdraws the funds from his RRSP. His T4RSP showed 852,000 in withdrawals from the House of Rock Bank (Box 221 and total tax of $15,500 deducted from these payments. 10. Several of Mr. Musician's songs, including his outstanding hit "Drop Kick Me Jesus Through The Goal Posts Of Life have provided him with substantial royalty payments over the years. nt Et Tax Software Assignment Problems a In 2019, the Never Say Die Record Company paid him $78,000 in royalty payments. No T5 was issued by the company. 11. In order to ensure the financial security of his family, Mr. Musician decided to return to song and purchased a Roland electric piano for $7,750 that was delivered there. He does not plan to use the space or piano for personal enjoyment, only for composing. 12. The previous year, on January 2, 2018, Mr. Musician elected not to make any further CPP contributions on his self-employed income. 13. Mr. Musician is required by a court order to pay spousal support of $400 per month to his former spouse, Lori Musician. Mr. Musician made spousal support payments of $4.800 dur- ing 2019. 14. Mr. Musician is required by a court order to make child support payments of $350 per month to Dolly Nurse for his two children, Megan and Andrew Nurse. A total of $4,200 was paid during the year. 15. Mr. Musician made contributions to the federal Liberal Party in the amount of $610 during the year. 16. Mr. Musician made a $5,000 contribution to his TFSA during the year. Thanks to the excellent investing advice of his gardener, the balance in his TFSA account has grown to more than $175,000 by the end of the year. Required: With the objective of minimizing Mr. Musician's Tax Payable, prepare Mr. Musician's 2019 income tax return using the Profile tax software program assuming Natasha does not file a tax return. List any assumptions you have made and any notes and tax planning issues you feel should be placed in the file. 500 costa 170.000 de tener what MM cs Man 7000 Macho wwm D 27-6000 BC. Th.2, Wed M Buy Browser w the Mode On Decem 220 M. Med deres to anal Wide Clinic to H 51200 w 100 300 30 Low 200 Door mother of two 573 Megan Nusa Dua 10 server for 2010 care se more Tax Software Assignment Problems TP. This not the Char problem DECLAIMER thomas Any Buty wo 1059 and on www MOTE 1.000 tonn 1994 She MM Ebom of the owner Linde 2012 only coming 2013 200 m 6 M Musicians with Freeon S. 200 into the wonder contando 1 st om they would wanng the show The cow.cohort og vamente penge Med out wit1.000 do 4000 for 2010 Von dos homeCRA dacht on the M cha SIN$27000 25 w bors 3000 how to use out 2017 indiretto Dedy Manson M Mancing Security and son Palement betwer12. There was not shown as Media TP Me Muschettone the newestione home order to face the toxitus Sand windom HTARSP showed 62.000 strom the House Rock Band 2nd toto $15.000 deducted from payment 10 Selo Mi Muscan's songs, nadghis outstando o Me Jesus through The Goal Pos Ofta provider with over the years women they bone 588 Chapter 11 Por outware Agent Pro was issued by the company ta be ou Re WE an tig contributions on his self-employed income In 2012 the Never Say Die Record Company paid him $78,000 in royalty payments. Not 11. In order to ensure the financial security of his family, Mr. Musician decided to return to song and purchased a Roland electric piano for $2750 that was delivered there. He does not clan writing in earnest On November 1, 2019, he rented a small, quiet studio for $700 a month 12. The pres you an lanuary 2 2018 M. Musician elected not to make any further CP to use the space or ano for personal enjoyment, only for composing. 13 M. Musician is required by a court order to pay spousal support of $400 per month to his former spouse, Lon Musician Mr. Musician made spousal support payments of SA 8000 14. M Musician is required by a court order to make child support payments of $350 per month to Doly Nurse for his two children, Megan and Andrew Nurse. A total of $4,200 was ad 15 M Musician made contributions to the federal Liberal Party in the amount of $610 during 16. Mr Musican made a $5,000 contribution to his TFSA during the year. Thanks to the excellent Investing advice of his gardener, the balance in his TFSA account has grown to more than 2019 income tax return using the ProFile tax software program assuming Natasha does not to Required: With the objective of minimizing Mr. Musician's Tax Payable, prepare Mr. Musicians a tax return List any assumptions you have made and any notes and tax planning issues you feel ing 2019 during the year F the year $175,000 by the end of the year should be placed in the file. In both Part A and Tax Software Assignment Problems Tax Software Assignment Problem Eleven - 1 This problem is an expansion of the Chapter 4 problem. DISCLAIMER: All characters appearing in this problem are fictitious. Any resemblance to real persons, living or dead, is purely coincidental. Mr. Buddy Musician (SIN 527-000-061) was born in Vancouver on August 28, 1952. He has spent most of his working life as a pianist and song writer. He and his family live at 111 WWW Street, Vancouver, B.C. V4H 3W4, phone (604) 111-1111. Mr. Musician's wife, Natasha (SIN 527-000-129), was born on June 6, 1994. She and Mr. Musi: cian have four children. Each child was born on April 1 of the following years: Linda, 2014 ; Larry 2015; Donna 2016; and Donald, 2017. Natasha's only income during 2019 is $3,200 from singing engagements Buddy and Natasha Musician have two adopted children. Richard (SIN 527-000-285) was born on March 15, 2002, and has income of $2,800 for the year. Due to his accelerated schooling, he started full time attendance at university in September of 2019 at the age of 17. His first semes. ter tuition fee is $3,000 and he requires books with a total cost of $375. These amounts are paid by Mr. Musician. The other adopted child, Sarah, was born on September 2, 1999 and is in full time attendance at university for all of 2019 (including a four month summer session). Her tuition is $9.600 and she requires textbooks that cost $750. These amounts are also paid by Mr. Musician. Sarah has no income during the year. Neither Richard nor Sarah will have any income in the next three years. They both have agreed that the maximum tuition amount should be transferred to their father. dor ve ar san lowing individuals ment Problems M Music's mother Eunice, was bom on April 10. 1932. and his father. Er was bomo er 16. 1830. They both live with Me Musician and his wife: While his father has some mai sus, he is not infirm. His mother is legally blind Eunice Musica had income of 25 for the you while eart Musician had income of $7500 Omer information concerning Mt Musican and his family for 2019 is as follows Mc Music med $16.500 for work as the house pianist at the Loose Moose Pub. His T4 showed that his employer withheld $500 for income taxes and 525730 for EL NO CPP was wild as he has previously filed an election to stop contributing to the CPP During the year Mr Musician made his annual 3.000 donation to Planned Penthood Ot Cand registered Canadian chanty 3 Mc Musician has been manied before to Loti Musician SIN 527-000-3191. Lonis 52 years old and ves in Fort Erie, Ontario M Musician has two additional Children who live with the mother, Ms Doly Nurse ISIN 52-000-5821, in Burnaby British Columbia. The children are Megan Nurse, aged 12. and Andrew Nurse, aged 14 Neither child has any income during 2019. While Ms. Nurse and children Although Buddy has provided limited financial sidby paying their dental and med Mc Musican were never married M Musician acknowledges that he is the father of both cal expenses, the children are not dependent on Buddy for support 5 M Musician wishes to claim all his medical expenses on a calendar year bas15. On Decem- ber 2 2019, Mr Musician paid dental expenses to Canada Wide Dental Clinics for the fol Himself Natasha (wife) $1.200 Richard (adopted son) 700 Sarah (adopted daughter 800 300 Linda (daughter 100 Earl father) 1,050 Lori (ex-wife) 300 Dolly Nurse mother of two of his children 675 Megan Nurse daughter of Dolly Nursel 550 Total $5,675 & Me Musician signed a contract with Fred Nesbitt on January 13, 2019, to do permanent modifications to his house. The contract was for the installation of ramps with sturdy hand talings outside his front and back doors to give his parents easier access to the house and modifications to their bathroom so they would be less likely to fall when using the shower The contract price was $5,800. As neither of his parents has a severe and prolonged mobil- ity impairment, these expenditures are not eligible medical expenses. 7 Mr. Musician paid four quarterly instalments of $1,000 each (total of $4.0001 for 2019. as requested on his Instalment Reminders from the CRA He paid each instalment on the due date 8 Mr Musician receives $727167 in Old Ago Security payments and $5,500 in Canada Pen sion Plan "retirement benefit payments over 12 months. There was no tax shown as with held on his T4A(OAS) or his T4AIP 9. Mr. Musician builds a state-of-the-art home theatre in a new extension of his home. In order to finance it , he sells stock in his RASP and withdraws the funds from his RRSP. His T4RSP showed 852,000 in withdrawals from the House of Rock Bank (Box 221 and total tax of $15,500 deducted from these payments. 10. Several of Mr. Musician's songs, including his outstanding hit "Drop Kick Me Jesus Through The Goal Posts Of Life have provided him with substantial royalty payments over the years. nt Et Tax Software Assignment Problems a In 2019, the Never Say Die Record Company paid him $78,000 in royalty payments. No T5 was issued by the company. 11. In order to ensure the financial security of his family, Mr. Musician decided to return to song and purchased a Roland electric piano for $7,750 that was delivered there. He does not plan to use the space or piano for personal enjoyment, only for composing. 12. The previous year, on January 2, 2018, Mr. Musician elected not to make any further CPP contributions on his self-employed income. 13. Mr. Musician is required by a court order to pay spousal support of $400 per month to his former spouse, Lori Musician. Mr. Musician made spousal support payments of $4.800 dur- ing 2019. 14. Mr. Musician is required by a court order to make child support payments of $350 per month to Dolly Nurse for his two children, Megan and Andrew Nurse. A total of $4,200 was paid during the year. 15. Mr. Musician made contributions to the federal Liberal Party in the amount of $610 during the year. 16. Mr. Musician made a $5,000 contribution to his TFSA during the year. Thanks to the excellent investing advice of his gardener, the balance in his TFSA account has grown to more than $175,000 by the end of the year. Required: With the objective of minimizing Mr. Musician's Tax Payable, prepare Mr. Musician's 2019 income tax return using the Profile tax software program assuming Natasha does not file a tax return. List any assumptions you have made and any notes and tax planning issues you feel should be placed in the file