Software Tax Assignment Question $2$ Greg Petro

DISCLAIMER: All characters appearing in this problem are fictitious. Any resemblance to real persons, living or dead, is purely coincidental.

Greg Petro is a successful luxury car salesperson. Vanessa, his wife, adopted their $14-$year$-$old biological grandson, Kane. Kane had an accident when he was very young, causing him to lose his eyesight and suffer extensive injuries to his jaw that have required major and prolonged dental work. To provide enough attention and care for Kane, Vanessa quit her part$-$time job.

Vanessa also cares for her mother, Kelsey Diesel, who lives with them. Due to age, Kelsey suffers from a large variety of health impairments. The family doctor has signed a letter stating that she is dependent on Greg and Vanessa because of her impairments. Kelsey does not qualify for Canadian OAS payments.

Vanessa$$s parents separated two years ago after her father, Ron Diesel, suffered enormous losses investing in NFTs$.$ They had to sell their house to cover the losses. In shame, Ron moved to Thailand. Ironically, Ron phones periodically and shamelessly asks for money.

Greg$$s brother, Nathan, is also living with Greg and Vanessa while he is enrolled as a full$-$time student at the University of Waterloo. Greg is paying his tuition in full with the agreement that Nathan has to transfer any available education$-$related amounts to Greg. Nathan has not yet filed his $2021$ income tax return but plans to do so$.$

Kane is studying full$-$time at Toronto Metropolitan University. Kane has agreed to transfer the maximum tuition credit to Greg.

Other relevant information about Greg for $2021$ is provided below.

Personal Information

Taxpayer

Title

Mr$.$

First Name

Greg

Last Name

Petro

SIN

$301-789-001$

Date of birth $($Y$/$M$/$D$)$

$1956-10-21$

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:

$943$ Living Large Path, Markham, Ontario, L$9$K $1$A$6$

Phone number:

$(905)555-5951$

Family Members

Spouse

Child

Mother$-$in$-$Law

First Name

Vanessa

Kane

Kelsey

Last Name

Petro

Petro

Diesel

SIN

$301-789-010$

$301-789-011$

$301-789-100$

Date of Birth $($Y$/$M$/$D$)$

$1955-01-02$

$2004-05-29$

$1935-09-02$

Net Income

$$7,115$ in CPP

Nil

$$496$

Family Members

Father$-$in$-$Law

Brother

First Name

Ron

Nathan

Last Name

Diesel

Petro

SIN

None

$301-789-101$

Date of Birth $($Y$/$M$/$D$)$

$1936-06-09$

$1973-10-31$

Net Income

Nil

$$7,320$

During September, Ron was arrested in Thailand. Vanessa had to spend three weeks in Thailand and pay $$5,500$ in bribes before she could get him released from jail. Greg had to pay $$4,200$ for a live$-$in care service for in$-$home help to take care of Kane while she was gone.

T$2202($Nathan$)$

Box

Amount

Tuition fees$$for Nathan Petro $($brother$)$

A

$7,130\mathrm{.}00$

Number of months in school$$part time

B

$0$

Number of months in school$$full time

C

$8$

Donor

Charitable Donation Receipts

Amount

Vanessa

Heart and Stroke Foundation of Canada

$1,250\mathrm{.}00$

Greg

Markham Food Bank

$3,350\mathrm{.}00$

T$4$

Box

Amount

Issuer$$Giga Lux Auto Inc.

Employment income

$14$

$381,650\mathrm{.}00$

Employee's CPP contributions

$16$

$2989\mathrm{.}00$

Employee's El premiums

$18$

$856\mathrm{.}36$

Income tax deducted

$22$

$105,600\mathrm{.}00$

Employment commissions

$42$

$79,360\mathrm{.}00$

Charitable donations

$46$

$480\mathrm{.}00$

During $2021,$ Greg paid for multiple clients over several engagements, spending $$3,298$ for meals and entertainment, $$3,168$ for hotels, and $$6,110$ for airline tickets. Every penny was fully reimbursed by Giga Lux Auto Inc.

Greg earns a combination of salary and commissions. His employer requires him to take substantial amounts of work home and signed the form T$2200$ to have a dedicated office in his home.

On March $14,2021,$ Greg purchased a new computer costing $$3,080$ and a few software programs costing $$1,660.$ Both purchases will be used for the sole purpose of his employment in his home office.

House Costs

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

$715$

Total area of home $($square feet$)$

$5,500$

Telephone line including high speed internet connection

$810$

Hydro

$3,910$

Insurance$$House

$4,130$

Maintenance and repairs

$3,120$

Mortgage interest

$5,190$

Mortgage life insurance premiums

$610$

Property taxes

$5,870$

$($Y$/$M$/$D$)$

Patient

Medical Expenses

Description

Amount

$2021-11-30$

Greg

Neo Inc.

Out of Canada insurance

$635\mathrm{.}00$

$2021-07-25$

Greg

Dr$.$ Macleod

Dental fees

$199\mathrm{.}30$

$2021-08-15$

Greg

Optician

Prescription glasses

$157\mathrm{.}59$

$2021-10-17$

Vanessa

Pharmacy

Prescription

$75\mathrm{.}45$

$2021-05-27$

Kelsey

Dr$.$ Lee

Psychiatric counselling

$2,850\mathrm{.}00$

$2021-02-12$

Ron

Tropical Disease Centre

Prescription

$420\mathrm{.}60$

$2021-12-24$

Nathan

Dr$.$ Brown

Group therapy

$5,000$

$2021-11-13$

Kane

Dr$.$ Suzuki

Orthodontics and dental

$28,900\mathrm{.}00$

Greg paid $$800$ for the care and feeding of Kane$$s seeing eye dog, Bandit, during $2021.$ At the beginning of $2021,$ Greg had a $2019$ net capital loss balance