Problem S 3 NITP Div B

Problem S 3 NITP Div B - $58,000 Paragraph 3(b) Taxable...

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Problem 1 - Section 3 Net Income for Tax Purposes – Division B Income For the 2008 Taxation Year Case 1 Case 2 Employment Income $90,000 $34,000 Income (Loss) from Business ( 20,000) ( 60,000) Income from Property 25,000 24,000 Taxable Capital Gains 5,000 12,000 Allowable Capital Losses ( 10,000) ( 10,000) Subdivision e Deductions ( 10,000) ( 8,000) Required: Calculate the Net Income for Tax Purposes (Division B Income). Indicate the amount and type of loss carryovers (if any) available at the end of the current year. Solution to Problem 1 Case 1 Case 2 Paragraph 3(a): Employment Income $ 90,000 $34,000 Income from Property 25,000 24,000 $115,000
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Unformatted text preview: $58,000 Paragraph 3(b) Taxable Capital Gains $ 5,000 $12,000 Allowable Capital Losses ( 10,000) ( 10,000) $ Nil $ 2,000 Balance from Par. 3(a) and 3(b) $115,000 $60,000 Subdivision e deductions ( 10,000) ( 8,000) Balance Par. 3(c) $105,000 $52,000 Deduction under Par. 3(d): Business loss ( 20,000) ( 60,000) Net Income for Tax Purposes (Division B Income) $ 85,000 $ Nil In Case 1 : The unused net capital loss carry over from the current year is $5,000 ($10,000 - $5,000) In Case 2 : The unused business loss carry over from the current year is $8,000 ($60,000 - $52,000)....
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Problem S 3 NITP Div B - $58,000 Paragraph 3(b) Taxable...

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