Question
After 30 years of living , working and paying taxes in Canada, you decided to move to enjoy the warmth and sun of Barbados. You
After 30 years of living , working and paying taxes in Canada, you decided to move to enjoy the warmth and sun of Barbados. You will depart on January 1, 2020 and severe your residential ties in Canada , effectively declaring Non Residency for income tax purposes. On the date, you own the following assets;
| ACB- Adjusted Cost Base | FMV Fair Market Value |
Oil Painting | $ 33,000 | $ 38,000 |
Shares in a CCPC | 16,000 | 48,000 |
Personal Residence | 220,000 | 342,000 |
Vacant Land | 87,000 | 108,000 |
Shares in Canadian Public Co. | 63,000 | 52,000 |
Yacht (Recreational Use Only) | 72,000 | 56,000 |
Required: Assume you make no elections related to her departure from Canada. Show all your calculations.
A)Determine the amount of the taxable capital gain or allowable capital loss as a result of your departure B) What other factors must be considered when deciding to claim a non-resident status ( You need to mention 5 considerations and explain them within the context of the question.
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