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 being fired for drinking on the job. 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 amounts 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 echo locator $($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: 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.

Personal Information

Taxpayer

Title Mr$.$

First Name George

Last Name Pharmacy

SIN $527-000-509$

Date of birth $($Y$/$M$/$D$)1957-07-02$

Marital Status Married

Canadian citizen? Yes

provide information to Elections Canada? Yes

Own foreign property of more than $$100,000$ Canadian? No

Taxpayer$$s Address

$123$ ZZZ Street, London, Ontario, N$0$Z $0$Z$0$

Phone number $(519)111-1111$

Family Members Spouse Child Mother$-$in$-$Law

First Name Valerie Kevin Joan

Last Name Pharmacy Pharmacy Drugstore

SIN $527-000-483527-000-517$ None

Date of birth $($Y$/$M$/$D$)1956-12-302005-10-171936-02-24$

Net income $$6,520$ in CPP Nil $$500$

Family Members Father$-$in$-$Law Brother

First Name David Martin

Last Name Drugstore Pharmacy

SIN None $527-000-533$

Date of birth $($Y$/$M$/$D$)1937-01-121974-06-02$

Net income Nil $$8,300$

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.

T$2202($Martin$)$ Box Amount

Tuition fees$$for Martin Pharmacy $($brother$)$ A $8,000$

Number of months in school$$part time B $0$

Number of months in school$$full time C $8$

T$2202($Kevin$)$ Box Amount

Tuition fees$$for Kevin A $3,600$

Number of months in school$$part time B $8$

Number of months in school$$full time C $0$

Donor Charitable Donation Receipts Amount

Valerie Mothers Against Drunk Drivers $($MADD$)1,000$

George Canadian Institute for the Blind $($CNIB$)3,000$

T$4$ Box Amount

Issuer$$Mega Pharma Inc.

Employment income $14378,000\mathrm{.}00$

Employee$$s CPP contributions $163,166\mathrm{.}45$

Employee$$s EI premiums $18889\mathrm{.}54$

Income tax deducted $22114,000\mathrm{.}00$

Employment commissions $4282,000\mathrm{.}00$

Charitable donations $46400\mathrm{.}00$

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$$s salary, he also earns commissions of $$82,000$ which are included in the employment income

of $$378,000.$ His employer requires him to have an office in his home and has signed the form T$2200$ 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$-$use. The computer cost $$3,600$ and the various software programs cost $$1,250.$

House Costs

Area of home used for home office $($square feet$)650$