Case Study – ITFO

Prepare the spouses income tax return for the year 2020 using Profile Tax (all Alberta residents). Mr. Roger Ricks (DOB January 31, 1969 SIN616282935) and his spouse, Helen (DOB January 30, 1974 SIN616292835) share 50/50 in the rental income. Helen had medical expenses of $2,100. Roger’s Tslips are as follows: T4 T4A T5007 Box 14 60,000 Box 18 2,500 Box 10 3,210 Box 16 2898 Box 22 250 Box 18 856.36 Box 22 21,681 Box 24 54,200 Box 26 58,700 RRSP contributions of Roger: Between March 5 to December 31, 2020 - $9,000 Between January 1 and February 26, 2021 - $1,000 RRSP deduction limit for 2020 - $45,000 The rental property income details are as follows: Rental Income $ 35,000 UCC of the rental property 210,000 Class 3 Condo Fees 3,850 Maintenance Expenses 3,200 Fire Insurance 1,500 Transportation expenses 550 Property Tax 1,400 Mortgage Interest 3,000 Helen will not claim CCA on the rental property. Roger has a painting business and details in 2020 are as follows: Painting income $ 55,000 Painting materials used 20,550 Advertising 1,000 Office supplies used 800 Professional fee (Accountant) 2,000 New Desktop 2,000 Class 52 acquired January 5, 2020 New Printer/Fax machine 500 Class 52 acquired January 5, 2020 Gas receipts 8,000 Personal Kms. driven in 2020 12,000 Business Kms. driven in 2020 26,000 Car maintenance: Oil change, tires, etc. 1,100 Motor vehicle insurance 2,400 Painting Equipment, Compressor UCC 18,200 Class 8 Roger sold in May 2020 an old compressor class 8 acquired in March 2010 for $7,000. The adjusted cost base was $3,000. Home utilities: Heat 4,600 Electricity 5,600 Maintenance 2,000 Property tax 2,300 Mortgage interest 800 Insurance 1,500 Roger used 2 of his house’s 5 rooms as business office.