CapGains - IN-CLASS PROBLEMSCAPITAL GAINSPROBLEM 1Jasmin...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: IN-CLASS PROBLEMSCAPITAL GAINSPROBLEM 1Jasmin sold the following assets during 20X6.Asset Proceeds of Adjusted Costs of Disposition Cost Base DispositionAutomobile $ 8,000 $14,000 $ Cottage 24,000* 12,000 2,400 Camera 900 1,800 Stamp collection 1,100 700 Boat 14,000 10,000 1,000 Shares of XXX Ltd. 3,000 3,500 300 Shares of YYY Ltd. 4,000 3,000 400 Antique furniture 5,000 2,500 100 Jewellery 800 1,900 * The purchaser of the cottage paid $10,000 on closing and is committed to payments of $7,000 on July 1, 20X7 and 20X8.A review of Jasmins 20X5 tax return indicated a capital loss ($3,000), a listed personal property loss ($2,000) which could not be deducted in 20X5 or any prior year, a non-capital loss of $10,000, and unabsorbed donations ($1,000).REQUIRED:(a) Calculate her minimum 20X6 net taxable capital gain.(b) What, if anything, can be done with the losses which cannot be utilized in 20X6?Asset Disposal Adjusted Disposal Capital Taxable Proceeds Cost Costs Gain/ Capital Base (Loss) Gain/ (Allowable Capital Loss)Personal Use PropertyAutomobile $ 8,000 $14,000 $ $(6,000) * Cottage 24,000 12,000 2,400 9,600 $ 4,800 Camera 1,000** 1,800 (800) * Boat 14,000 10,000 1,000 3,000 1,500 Antique 5,000 2,500 100 2,400 1,200$ 7,500Listed Personal PropertyStamps 1,100 1,000** 100 50 Jewellery 1,000** 1,900 (900) (450)$ (400)Other AssetsXXX shares 3,000 3,500 300 (800) (400) YYY shares 4,000 3,000 400 600 300$ (100)Reserve for CottageLeast of:(i) 80% X $9,600 = $7,680(ii) $14,000X $9,600 = $5,600 (5,600) $(2,800) $24,00020X6 capital loss(3,000) $(1,500)* Losses on personal-use property are not deductible....
View Full Document

Page1 / 6

CapGains - IN-CLASS PROBLEMSCAPITAL GAINSPROBLEM 1Jasmin...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online