Questions: Each student is expected to state (i) the asumptions made, (ii) explanations of the tax planning issues in the tax return year and (iii) general tax planning advice.

John Smith 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 out for a drive when she was hit by a drunk driver. She and her husband were killed and their 14-year-old son, Tom, was blinded in the accident. He also suffered extensive injuries to his jaw that have required major and prolonged dental work. John and his wife, Emma, adopted Tom. Emma 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 John and Emma because of her impairments. Joan does not meet the residency requirements necessary to qualify for OAS. Emma'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. John's brother, Martin, completed an alcohol rehabilitation program after his drinking caused significant problems in his life. He is also living with John and Emma while he is enrolled as a full-time student at Western University. John is paying his tuition, and Martin has agreed to transfer any available education-related tax credit to John. Although Martin plans to file his 2022 income tax return, he has not done so yet. Tom is taking several undergraduate psychology courses at Western University. After hearing a talk given by an expert blind echolocator (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. Tom has agreed to transfer the maximum tuition credit to John. Other information concerning John for 2022 is provided on the following pages. Required: With the objective of minimizing John's income tax payable, prepare his 2022 income tax return using the ProFile tax software program assuming Emma 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 any GST/HST \& PST implications in your solution by assuming that John does not qualify for the GST/HST rebate. Also determine John's 2023 RRSP deduction limit on the assumption that there are no unused RRSP deduction room available at the end of 2021 and no undeducted RRSP contributions. Note that while RRSP deductions are covered in Chapter 10, the ProFile software will automatically prepare the RRSP deduction limit for 2023 on form "RRSPLimit." During September, David was arrested in Chile. Emma had to spend three weeks in Chile and pay $2,000 in bribes before she could get him released from jail. John had to pay Nannies on Cal $3,500 for in-home help to take care of Tom while she was gone. In 2022, Mega reimbursed John $3,788 for meals and entertainment with clients, $2,268 for hotels, and $4,925 for airline tickets while traveling for employment purposes. In addition to John's salary, he also earns commissions. His employer requires him to have an office in his home and has signed the form T2200 certifying each year to this effect. On October 1, 2022, John purchased a new computer and software that will be used solely in his home office for employment purposes. The computer cost $3,600 and the various software programs cost $1,250. John paid $800 for the care and feeding of Tom's seeing eye dog, Baron, in 2022