Jeffrey Lowe is an associate in a local law firm. He also has a number of sources
Question:
Salary from law practice...................................................................... $120,000
Business loss..................................................................... (7,500)
Gross rents received from rental property.................................... 25,000
Operating expenses on rental property...................................... (31,000)
Capital gain on sale of shares................................................... 10,000
Net interest income................................................................9,000
Allowable capital loss.....................................................................
(including allowable business investment loss of $6,000)............... (11,000)
Contribution to RRSP.......................................................... (1,000)
Share of net income from duplex rental property....................................
(owned by Jeffrey and his sister)............................................... 5,000
Net capital losses from 2006................................................... (3,000)
REQUIRED
Calculate Jeffrey's 2012 net income for tax purposes in accordance with the ordering rules in section 3 of the Income Tax Act.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Question Posted: