Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Anita Lopez operates a full-time law practice in eastern Ontario. In her spare time, she maintains a small rural acreage for the purpose of growing

image text in transcribed

Anita Lopez operates a full-time law practice in eastern Ontario. In her spare time, she maintains a small rural acreage for the purpose of growing and selling Christmas trees. In addition, she derives income from various investments and is an art collector. Below are her financial results for 2020. $107.000 (11,500) 31,000 (41,000) Net income from law practice Loss on tree farm operation Gross rents received on residential rental property Operating expenses on residential rental property before capital cost allowance Gain on sale of shares of public corporations Loss on sale of summer cottage Gain on sale of oil painting Gain on sale of shares of a small business corporation Lump-sum payment to ex-spouse as part of divorce settlement Loss on sale of shares of a public corporation 88,000 (6.000) 10.000 22.000 (44,000) (15,000) At the end of 2019, the following tax accounts existed: Net listed personal property losses forward from 2017 (actual loss) Undepreciated capital cost allowance on rental property Net Allowable capital losses Anita had not previously used any of her lifetime capital gain deduction $(5,000) $(176.000) $(7.000) Required: What is Anita's taxable income for 2020? If a Segment is 0. puto. S 107.000 3(a) Business Income 3(b) Taxable capital gains: Net LPP taxable capital gain Taxable capital gain - Public corpshares Taxable Capital gain -Small business corporation shares Subtotal Segment B 0 3(c) 3(0) Sub total Segment D Net income for tax purposes Deduct: S $ 0 107,000 Taxable income S 107,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Michael J. Jones

2nd Edition

0470017791, 978-0470017791

More Books

Students also viewed these Accounting questions

Question

What do you believe was the cause of the turnover problem?

Answered: 1 week ago