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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