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Attending friend's parent with disability

My client was paid on a weekly basis to take care of a person with dementia. Will this be reported as a business income? I believe the amount was paid out from the power of attorney

Not sure what you mean by that?
If the person with the dementia is the donor, and your client is the donee, he has potentially a very serious problem if the POA document does not specifically permit such payment to the donee…

If you client is the employee of the donee, that is a whole other issue, with T4 matters etc.

Unless your client is making a business of this type of work she is probably an employee of the person whe is providing the sevice to, so should have been T4’d

Meant that a lawyer is managing the estate. The contract was only for 5/6 months

I would report as business income.

1 Like

I am having a bad time getting info into return as capital gain

My client purchased rental property in 2004 for 111000.which which we claimed as business on his tax return he just sold for 477000 which makes a cap gain.

I have gone into his business return down to line 9936 double clicked and went into his amortization schedule however, when I enter information it does not show on line 27. His ownership is 50% with wife. Do you have any ideas as to what I am doing wrong

Bev

@Bev
Not sure why are you hijacking this post about a dementia patient’s care with some other reference to Capital Gains?

Perhaps you may consider reading the Forum Help information before posting unrelated questions in various threads on other topics - that would make it easier on us all.

[In any event, your question does not seem to make sense from an income tax act point of view, as you appear to be mixing and matching different sections of the Act. Perhaps explain in better in your new thread? It sounds like it needs an Accountant to take a look at it?]

Please start your own topic for your question.
thanks

Well, since the patient is alive, it would not be an Estate exactly…

If your client is a business person, then they must provide you with proper books and records pursuant to Section 230, sufficient to determine their business income for tax purposes pursuant to Section 9 (etc).

If they are an employee, they should contact their employer to obtain the missing T4 for 2018.

As a tax preparer, one cannot make something up on behalf of someone else. The client needs to take responsibility to provide you with what you need, then you can record and report it accordingly.