Early last year, Hazel purchased 100 units of Sky mutual fund for $12 per unit. She received
Question:
Early last year, Hazel purchased 100 units of Sky mutual fund for $12 per unit. She received a T3 from the fund for last year showing the following distributions from the fund, all of which were reinvested in her account resulting in the purchase of three additional units:
• Actual amount of eligible dividends…………. $30.00
• Taxable amount of eligible dividends…………. $41.40
• Capital gains………….………,..........….…………. $10.00
• Interest………….………….……...............…………. $ 8.00
On January 4th of the current year, Hazel sold 50 of her mutual fund units for $900.
Determine the taxable capital gain to be reported by Hazel in the current year. Income tax reference: ITA 47(1).
Step by Step Answer:
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold