Mr. Buddy Musician (SIN 527-000-061) was born in Vancouver on August 28, 1952. He has spent most of his working life as

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Mr. Buddy Musician (SIN 527-000-061) was born in Vancouver on August 28, 1952. He has spent most of his working life as

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Mr. Buddy Musician (SIN 527-000-061) was born in Vancouver onAugust 28, 1952. He has spent most of his working life as a pianistand song writer. He and his family live at 111 WWW Street,Vancouver, B.C. V4H 3W4, phone (604) 111-1111.
Mr. Musician’s wife, Natasha (SIN 527-000-129), was born on June6, 1994. She and Mr. Musician have four children. Each child wasborn on April 1 of the following years, Linda, 2014; Larry, 2015;Donna, 2016; and Donald, 2017. Natasha’s only income during 2019 is$3,200 from singing engagements.
Buddy and Natasha Musician have two adopted children. Richard(SIN 527-000-285) was born on March 15, 2002, and has income of$2,800 for the year. Due to his accelerated schooling, he startedfull time attendance at university in September of 2019 at the ageof 17. His first semester tuition fee is $3,000 and he requiresbooks with a total cost of $375. These amounts are paid by Mr.Musician.
The other adopted child, Sarah, was born on September 2, 1999,and is in full time attendance at university for all of 2019(including a four month summer session). Her tuition is $9,600 andshe requires textbooks that cost $750. These amounts are also paidby Mr. Musician. Sarah has no income during the year.
Neither Richard nor Sarah will have any income in the next threeyears. They both have agreed that the maximum tuition amount shouldbe transferred to their father.
Mr. Musician’s mother, Eunice, was born on April 10, 1932, andhis father, Earl, was born on November 16, 1930. They both livewith Mr. Musician and his wife. While his father has some mobilityissues, he is not infirm. His mother is legally blind. EuniceMusician had income of $9,500 for the year, while Earl Musician hadincome of $7,500. Other information concerning Mr. Musician and hisfamily for 2019 is as follows:
1. Mr. Musician earned $16,500 for work as the house pianist atthe Loose Moose Pub. His T4 showed that his employer withheld $500for income taxes and $287.30 for EI. No CPP was withheld as he hadpreviously filed an election to stop contributing to the CPP onJanuary 2, 2018.
2. During the year, Mr. Musician made his annual $3,000 donationto Planned Parenthood Of Canada, a registered Canadian charity.
3. Mr. Musician has been married before to Lori Musician (SIN527-000-319). Lori is 52 years old and lives in Fort Erie,Ontario.
4. Mr. Musician has two additional children who live with theirmother, Ms. Dolly Nurse (SIN 527-000-582), in Burnaby, BritishColumbia. The children are Megan Nurse, aged 12, and Andrew Nurse,aged 14. Neither child has any income during 2019. While Ms. Nurseand Mr. Musician were never married, Mr. Musician acknowledges thathe is the father of both children. Although Buddy has providedlimited financial aid by paying their dental and medical expenses,the children are not dependent on Buddy for support
5. Mr. Musician wishes to claim all his medical expenses on acalendar year basis. On December 2, 2019, Mr. Musician paid dentalexpenses to Canada Wide Dental Clinics for the followingindividuals: Himself $1,200 Natasha (wife) 700 Richard (adoptedson) 800 Sarah (adopted daughter) 300 Linda (daughter) 100 Earl(father) 1,050 Lori (ex-wife) 300 Dolly Nurse (mother of two of hischildren) 675 Megan Nurse (daughter of Dolly Nurse) 550 Total$5,675
6. Mr. Musician signed a contract with Fred Nesbitt on January13, 2019, to do permanent modifications to his house. The contractwas for the installation of ramps with sturdy hand railings outsidehis front and back doors to give his parents easier access to thehouse and modifications to their bathroom so they would be lesslikely to fall when using the shower. The contract price was$5,800. As neither of his parents has a severe and prolongedmobility impairment, these expenditures are not eligible medicalexpenses.
7. Mr. Musician paid four quarterly instalments of $1,000 each(total of $4,000) for 2019, as requested on his InstalmentReminders from the CRA. He paid each instalment on the due date. 8.Assume that Mr. Musician has not applied to receive either OAS orCPP benefits.
With the objective of minimizing Mr. Musician’s TaxPayable, prepare Mr. Musician’s 2019 income tax T1 and T4 assuming Natasha does not file a tax return. List anyassumptions you have made and any notes and tax planning issues youfeel should be placed in the file.
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