Homework Problem 11-2

# Homework Problem 11-2 - Solution to Problem 11-2 Facts Ms...

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Solution to Problem 11-2 Facts: Ms. Brenda Breau had the following financial data: 2007 2008 2009 2010 Business Income (Loss) \$18,000 (\$14,000) \$30,000 (\$19,000) Farming Income (Loss) (\$10,000) \$2,000 \$3,150 (\$2,000) Dividends (Grossed-up) \$2,360 \$2,950 \$3,963 \$6,450 Capital Gains \$1,200 \$2,000 \$4,000 \$4,500 Capital Losses (\$4,200) Nil Nil (\$14,500) Ms. Breau’s farming losses are Restricted Farm Losses All of the dividends are from taxable Canadian Corporations and include the gross-up At the beginning of 2007, there are no loss carry overs from prior years None of the losses can be carried back to a year prior to 2007 Ms. Breau requires \$14,000 of Taxable Income each year in order to fully utilize her personal tax credits Calculate Ms. Breau’s minimum NIFTP and Taxable Income for each of the four years

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2007 3(a) Income From All Sources: Business Income \$18,000 Dividends grossed up) 2,360 \$20,360 3(b) Net Taxable Capital Gains: Taxable Capital Gains (1/2)(\$1,200) \$600 Allowable Capital Loss: (1/2)(\$4,200) = \$2,100 (600 ) Nil
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Homework Problem 11-2 - Solution to Problem 11-2 Facts Ms...

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