Karl owns an autobody shop that is not incorporated.  He uses excel to calculate his revenue and detail his expenses for his accountant each year.  His accountant review the receipts, and excel spreadsheet and completes his T2125 along with the rest of his personal tax return.  

This year there were a few expenses that the accountant omitted from Karl’s T2125 and would like to know. 

• Karl hired his son to wash cars for the summer.  He normally pays Bobby’s tuition, so he just paid him $6,000.  Bobby worked about 200 hours over the summer. Instead of deducting the $6,000 his accountant only deducted minimum wage x 200 hours.
• Rather than buy a new truck for the business, Karl decided to lease one.  He is leasing a fully loaded Toyota Tundra for 24 months.  The cost per month of the lease is $1,044. His accountant didn’t deduct the full $1,044 even though Karl only drives the vehicle for business purposes.
• Karl is a member of the Derrick Golf & Winter Club in Edmonton. He paid $4,295 for his annual golf membership. He noticed it wasn’t deducted.
• Karl recently decided to get life insurance and paid $1,240 in life insurance premiums.  The life insurance premiums aren’t required for collateral.  His accountant didn’t deduct these premiums.

Required: 

Explain to Karl why his account either modified or omitted the above expenses from his T2125. Your response should be in a memo format written directly to Karl.