Question
Calculating property income Charlotte has made some investments during the year 2021 and is consulting you to determine her property income under section 3(a). With
Calculating property income Charlotte has made some investments during the year 2021 and is consulting you to determine her property income under section 3(a). With excess cash, Charlotte felt she needed to invest in the stock market. Her investment resulted in an eligible dividend of $2,000 on May 4, 2021. Not satisfied with her investment, Charlotte sold her shares and generated a capital gain of $1,000. After lengthy negotiations, Charlotte purchased her father's shares of ABC Corporation Inc. The company voted an unqualified dividend of $40,000 on September 30, 2020. Charlotte cashed this dividend on that date. Finally, on October 1, the day after the ABC Inc. dividend was paid, Charlotte bought a bond for the same $40,000, bearing interest at 5%. She told you that she wants to use the accrual method to tax herself on the interest. She had to pay $1,500 to her financial advisor to get the right advice to make these investments. Calculate the amount of Charlotte's property income based on the above information.
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