Taxpayer: Josh Friend

Birthdate: Jan 7, 1978

SIN #: 111 111 118

Address: 3 Sunny St, Toronto ON M4M 3X9

Tel: (416) 728-1968

Spouse: Ava Friend

SIN # 222 222 226

Birthdate: Feb 4, 1977

Josh and Ava have one child, a daughter, Susan, born March 4, 2003. Susan worked in the summer and her income was 2100.00. She is not filing a tax return for 2021.

Susan attends Seneca College. The tuition was paid for by her parents in the amount of 8,000. She attended school for 8 months. Susan, as all teenagers, lost the official tax receipt, but her mother has assured you that the amounts are correct. Susan has committed to getting another receipt to sign it to authorize the transfer to her parents, if you think it would be beneficial.

Joshs T4 is attached.

Josh is required to travel for his work. He is required by his employer, Apex Solutions, to pay his own expenses and has a signed T2200 from his employer. He does not receive any allowances from his employer, and he is not eligible for any GST/HST rebate. Enter the data on the HST Taxable column, on the T777A form, which you get to from the jacket (see Other Employee Expenses). He is not a commissioned salesperson. Hint: What is the impact of this on his claim?

Expenses he has incurred relating to his job are as follows:

Auto expenses for the year

Gas $4,200.

Insurance $1,100

Maintenance $1,400

License $ 120

Interest on car loan $ 4,100

Josh drove his car a total of 40,000 KM in 2021 30,000 of which were travel for business. The car is a loaded 2021 Jeep Grand Cherokee. He bought it on Jan 6, 2021, for a cost of 79,100 including HST of 9,100. This is a class 10.1 asset which has a maximum of 33.900. (TRY to enter the actual car cost and see what happens!)

Other expenses

Hotel accommodations $3,700

Meals while traveling $1,500

Cell phone business related $1,000

Avas T4 is attached. Note that she has no commission income. HINT How does this affect her hone office claim?

Ava is disabled and has claimed the amount in previous years.

Ava works from home and meets the requirements to claim home office expenses. Avas home office occupies 200 square feet in her 2500 square foot house. Her housing related costs for the year are as follows:

Property Tax $ 4,500

Insurance $ 950

Mortgage Interest $14,000

Basic Maintenance $ 2,500

Electricity $ 2,400

Heat (Gas) $ 3,600

Office supplies for work $ 550 100% for work use!

See T5 attached for the couples investment income.

Josh owns a triplex (18 Cook Street in Toronto, M4M 3X9) that is fully rented. The triplex has three units and was purchased on March 13, 2021, for $935,000 of which $100,000 can be allocated to the land. It was financed with a $450,000 mortgage on which $ 13,500 of interest has been paid in 2021. Other information pertaining to the triplex is as follows:

Total rental income $144,000

Insurance $ 4,200

Property Tax $ 9,000

Yard & driveway Maintenance $ 2,500

Maintenance by Josh (materials $500, Joshs estimate of what is time is worth - labor $400) $ 900

Advertising $350

Legal Fees to draw up rental agreements $850

Utilities $3,000

The building is a class 1 asset (4 %) for CCA purposes. Additionally, on March 31, 2021, Josh purchased appliances for the common laundry room for a cost of $ 2,150. (Class 8)

Josh donated 900.00 to Canadian Cancer Society.

Ava paid for the year 4,200 to her therapist Dr Isaacs.

REQUIRED:

Change the last name for Josh and Ava to your last name

Choose a new name for the child

Using Cantax software prepare a coupled 2021 tax return for the husband and wife.

SUBMIT in PDF format on Blackboard

2021 Tax Summary for the family. This option is under the GOTO menu item.

Statement of Real Estate Rentals

Employment Expenses Workchart- For Josh

Employment Expenses Workchart For Ava

Allowable Automobile Expense T777A

T1-Dep form

The Full Tax Jacket for Josh

The Full Tax Jacket for Ava.

How to solve this on Cantax T1 2021?