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@ Calculate Net Income for Tax Purposes (NIF TP. Dlv B) & Taxable income (TI) Consider Loss Carry Forwards & Comment [16 marks, approx. 26

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@ Calculate Net Income for Tax Purposes (NIF TP. Dlv B) & Taxable income (TI) Consider Loss Carry Forwards & Comment [16 marks, approx. 26 mins] Luke has come to you for tax advice for 2019 He has identified the following income for 2019. REQUIRED (SHOW ALL DETAILS & CALCULATIONS) PART 1 [12 marks] Luke would like you to calculate the effects of the amounts provided on his net income for tax purposes (NIFTP - Division B) and taxable income (TI) (after Division C deductions, if any). (Note: you do not need to calculate federal taxes or non-refundable tax credits) PART 2 [3 marks) Luke would also like you to comment on the net capital loss carry forward amount and explain when or how he might be able to utilize this carry forward amount CALCULATE AMOUNT AVAILABLE TO CARRY FORWARD OR BACK AND DESCRIBE THE CARRY FOWARD & BACK RULES Employment 60,000 Lottery winnings 7.000 Stock option benefit 10,000 Division C deduction for stock option (5,000 Business Income (loss) (25,000) Capital gain 40,000 Capital loss (55.000) Inheritance from his grandmother 4,000 Dividends - Actual amount received 2.000 Dividends Gross-up amount 300 SA Papp BT @ Calculate Net Income for Tax Purposes (NIF TP. Dlv B) & Taxable income (TI) Consider Loss Carry Forwards & Comment [16 marks, approx. 26 mins] Luke has come to you for tax advice for 2019 He has identified the following income for 2019. REQUIRED (SHOW ALL DETAILS & CALCULATIONS) PART 1 [12 marks] Luke would like you to calculate the effects of the amounts provided on his net income for tax purposes (NIFTP - Division B) and taxable income (TI) (after Division C deductions, if any). (Note: you do not need to calculate federal taxes or non-refundable tax credits) PART 2 [3 marks) Luke would also like you to comment on the net capital loss carry forward amount and explain when or how he might be able to utilize this carry forward amount CALCULATE AMOUNT AVAILABLE TO CARRY FORWARD OR BACK AND DESCRIBE THE CARRY FOWARD & BACK RULES Employment 60,000 Lottery winnings 7.000 Stock option benefit 10,000 Division C deduction for stock option (5,000 Business Income (loss) (25,000) Capital gain 40,000 Capital loss (55.000) Inheritance from his grandmother 4,000 Dividends - Actual amount received 2.000 Dividends Gross-up amount 300 SA Papp BT

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