Taxation: Profile tax software

Question 3

Roger Armstrong (D.O.B. 1967-01-01) is an insurance broker who has been very successful at his job in the last few years.

Three years ago, his only child, Victoria, was driving a car that was hit by a distracted driver. She and her husband were killed, and their 13-year-old son, Geoffrey, was blinded by the accident.

Roger and his wife, Isabella, adopted Geoffrey. Isabella quit her pat-time job to care for him.

Isabella's parents went through a nasty separation a few years ago and Rita moved in with Roger and Isabella. Isabella's father's (Michael) current location is unknown, but it is believed that he is living somewhere in the Baltic.

Isabelle cares for her mother, Rita, who lives with them. Rita suffers from dementia. The family doctor has signed a letter stating that she is dependent on Roger and Rita because of her impairment. Rita does not meet the residency requirements necessary to qualify for Canadian Old Age Security.

Roger's brother, Chuck, wanted a career change so he went back to school. Chuck is also living with Roger and Isabella while he is enrolled as a full-time student at the University of Waterloo.

Roger pays his tuition and Chuck has agreed to transfer any available education related amounts to Roger.

During the 2018 taxation year, Roger paid $7,500 in eligible tuition fees for Chuck to go back to school. Chuck was a full-time student for 8 months during the year.

Chuck has not filed his 2018 T1 Return but he plans on filing it in the near future.

In addition to his salary, Roger also earns commissions. His employer requires him to have an office in his home and has signed the form T2200 each year to this effect.

In January 2018, Michael was arrested in Estonia. Isabella had to spend three weeks in Estonia before she could get him released from jail.

During this time, Roger paid Nannies on Call $5,000 for in-home help to take care of Geoffrey while Isabella was away.

During the year, Roger's employer reimbursed $4,000 for meals and entertainment with clients, $3,500 for hotels and $6,000 for airline tickets.

Roger paid $800 for the care and feeding of Geoffrey's seeing eye dog.

During the year, Isabella and Roger made donations of $1,000 and $5,000, respectively, to the Seeing Eye Dog Society.

During the 2018 taxation year, Roger paid for the following medical expenses for the following individuals:

Name

Procedure

Amount

Roger Dental $500

Roger New Glasses $1,200

Roger Prescriptions $250

Isabella Dental $400

Rita Prescriptions $800

Chuck New Glasses $1,200

Geoffrey Dental $700

Finally, Roger has a home office which is used exclusively for to earn income and approximately 1/5^th of the house's square footage is dedicated to the home office. During the 2018 taxation year, Roger incurred the following expenses

Expense Amount

Hydro $3,000

Insurance 1,200

Maintenance $4,500

Mortgage Interest $7,000

Mortgage Life Insurance $600

Property Taxes $6,500

Required: Prepare the Roger's 2018 income tax return using the Profile tax software program.

Name:

Isabella Armstrong 1 966-01-01 $9,500

Geoffrey Armstrong 2003-02-01 $0

Rita Johnson 1950-03-0 1 $600

Chuck Armstrong 1965-04-01 $11,000

Michael Johnson 1950-02-01 $500

Roger's T4 slip from his employer (Insurance Inc.) has the following amounts:

Box 14 $400,000

Box 22 $120,000

Box 16 $2,593.80

Box 42 $95,000

Box 18 $858.22

Box 46 $1,000