Prepare morticia and gomez 2021 income tax returns

Assignment Help Taxation

Reference no: EM133354081

Questions: 1. Morticia and Gomez Addams are new clients to CCMS LLP and they would like us to prepare their 2021 personal income tax returns. They have already registered for CRA online mail.

2. Morticia (SIN 123 456 789) was born on February 2, 1977 in Vancouver, BC. Gomez (SIN 234 567 891) was born on March 9. 1979 in Calgary, AB. Morticia and Gomez are married and live at 111 Halloween Way, Victoria, BC, V1W 2B9. Their phone number is 250-555-3275

3. Morticia works as a Forensic Technician and is an employee of the BC Government. The T4 reporting her employment income is attached.

4. Gomez is a sole proprietor and operates his business, Dark Side Window Tinting, out of a nearby garage, where he earns business income. His business address is 1407 Westfield, Victoria, BC V1W 3B0. His business number is 12345 6789 RT 0001. He has provided a listing of his revenues and expenses (attached), which should be reported on form T2125. Ignore GST

5. Morticia and Gomez have some investments in an unregistered portfolio. The income is to be split 50/50. The T5 reporting their investment income is attached.

6. Morticia and Gomez have two children, twins, Wednesday (daughter) and Pugsley (son) born May 4, 2012. They attend Cousin Itt Afterschool Care throughout the school year, which costs $400 per child per month (10 months/44 weeks of the year).

7. Gomez donated $800 to Kitty Kat Animal Shelter and another $1,000 to the Uncle Fester Homeless Shelter. Both are registered charities. (Donations)

8. During the year Morticia contributed $500 to the NDP Party of Canada, a registered federal political party. (Other credits)

9. The Addams family claims their medical expenses on a calendar basis. Despite having an excellent health care plan provided by Morticia's employer, she still paid the following qualifying medical expenses out of pocket: Morticia $450 Gomez 4,500 Wednesday 1,535 Use the date Jan 1, 2021 for all medical expenses.

10. On April 12th, 2021 Gomez sold 200 shares of the Lurch Corporation (a publicly traded company) for $150.60 per share. He had originally purchased them for $51.69 in 2015. The shares were held in the joint account and as such the gain should be split 50/50 with Morticia. These dispositions will be reported on schedule 3.

11. Gomez paid $1,400 per quarter, $5,600 for the entire year, in income tax installments (Other credits). Prepare Morticia and Gomez's 2021 income tax returns (T1) using the 2021 version of Profile software. See attachments on following pages.

Reference no: EM133354081

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