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Can anyone help me to figure out the calculation of net taxable gain? Please help me with the following question that has correct answers... Please
Can anyone help me to figure out the calculation of net taxable gain?
Please help me with the following question that has correct answers... Please help me with the following question that has correct answers provided. Could you figure out the calculation of West jet shares and net taxable gain only. here is the question Dr. Jake Roy is 36 years old and is in the process of getting a divorce. As part of the divorce proceedings, Dr. Roy must sell a number of his assets and holdings in order to divide the assets of the marriage and pay a large settlement to his former spouse, Jill Roy. Dr. Roy has provided you with the following list of assets that he sold in the current year, including the asset cost and the proceeds of disposition: Click on the icon to view the list of assets.) Requirements Asset Description Capital gain (or loss) Sailboat S 12,000.00 Speedboat S 122,000.00) Principal Residence $ 155,000.00 Vacant Land 5 (270,210.00) Big Pharma Shares 5 199,900.00) Dr. Roy PC Shares S 2,657,670.00 S 3,300.00 Westjet Shares 5 60,683.00 Requirement 2. Calculate the net taxable capital gain for Dr. Jake Roy for the current year. (Round your answer to the nearest cent.) The net taxable gain for the year is $1,189,526.50 Gold Ring Here is the additional information which help to figure out the amount: Asset Description Proceeds of Disposition Original Price Paid Sailboat $93,000.00 $81,00 Speedboat $51,000.00 $73,00 Home $380,000.00 $225,00 Additional information: The home was the principal residence for Dr. Roy and his former spouse for 10 years, ending in the current taxation year. Last year, Dr. Roy sold his cabin at the lake, which he claimed as his principal residence for two taxation years (the cabin at the lake was designated as Dr. Roy's principal residence for the two most recent taxation years. Therefore, this home cannot be claimed as Dr. Roy's principal residence for those years. Vacant land $47.000.00 $315,000.00 Additional information: Dr. Roy bought this vacant land as an investment property. Since its purchase, the land has been vacant and Dr. Roy has not earned any income on the land, but he paid $1,700 in property taxes and $510 on mortgage interest on the land during this time. $680 per share 510 Big Pharma shares $490 per share Additional information: On the sale of the shares, Dr. Roy paid a brokerage commission of $3,000. 950 Dr. Jake Roy Professional Corporation $2,900 per share $85 per share Additional information: Dr. Roy had to liquidate some shares of his privately owned professional corporation (which operates his dental practice) to pay for a settlement to his former spouse. Dr. Roy paid legal fees related to this sale of shares of $16,580. Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Gold ring $4,300 SO Additional information: Dr. Roy inherited this ring from his mother's estate. At the time of his mother's death, the ring had a fair market value of $280. Westjet shares $50 per share (December) Various Additional information: Dr. Roy purchased the Westjet shares over a period of time. Several years ago, he purchased 1.100 shares for $20 per share. In January of the previous taxation year, Dr. Roy purchased 700 shares for $19 per share. In April of the previous taxation year, Dr. Roy sold 1,300 shares at $20 per share to buy a gift for his wife. In June of the current taxation year, Dr. Roy purchased 1,050 shares for $28 per share. In October of the current taxation year, Dr. Roy purchased another 1,400 shares for $34 per share. In December of the current year, Dr. Roy sold all of his remaining Westjet shares. There are no brokerage fees on any of the Westjet share transactions. Please help me with the following question that has correct answers... Please help me with the following question that has correct answers provided. Could you figure out the calculation of West jet shares and net taxable gain only. here is the question Dr. Jake Roy is 36 years old and is in the process of getting a divorce. As part of the divorce proceedings, Dr. Roy must sell a number of his assets and holdings in order to divide the assets of the marriage and pay a large settlement to his former spouse, Jill Roy. Dr. Roy has provided you with the following list of assets that he sold in the current year, including the asset cost and the proceeds of disposition: Click on the icon to view the list of assets.) Requirements Asset Description Capital gain (or loss) Sailboat S 12,000.00 Speedboat S 122,000.00) Principal Residence $ 155,000.00 Vacant Land 5 (270,210.00) Big Pharma Shares 5 199,900.00) Dr. Roy PC Shares S 2,657,670.00 S 3,300.00 Westjet Shares 5 60,683.00 Requirement 2. Calculate the net taxable capital gain for Dr. Jake Roy for the current year. (Round your answer to the nearest cent.) The net taxable gain for the year is $1,189,526.50 Gold Ring Here is the additional information which help to figure out the amount: Asset Description Proceeds of Disposition Original Price Paid Sailboat $93,000.00 $81,00 Speedboat $51,000.00 $73,00 Home $380,000.00 $225,00 Additional information: The home was the principal residence for Dr. Roy and his former spouse for 10 years, ending in the current taxation year. Last year, Dr. Roy sold his cabin at the lake, which he claimed as his principal residence for two taxation years (the cabin at the lake was designated as Dr. Roy's principal residence for the two most recent taxation years. Therefore, this home cannot be claimed as Dr. Roy's principal residence for those years. Vacant land $47.000.00 $315,000.00 Additional information: Dr. Roy bought this vacant land as an investment property. Since its purchase, the land has been vacant and Dr. Roy has not earned any income on the land, but he paid $1,700 in property taxes and $510 on mortgage interest on the land during this time. $680 per share 510 Big Pharma shares $490 per share Additional information: On the sale of the shares, Dr. Roy paid a brokerage commission of $3,000. 950 Dr. Jake Roy Professional Corporation $2,900 per share $85 per share Additional information: Dr. Roy had to liquidate some shares of his privately owned professional corporation (which operates his dental practice) to pay for a settlement to his former spouse. Dr. Roy paid legal fees related to this sale of shares of $16,580. Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Gold ring $4,300 SO Additional information: Dr. Roy inherited this ring from his mother's estate. At the time of his mother's death, the ring had a fair market value of $280. Westjet shares $50 per share (December) Various Additional information: Dr. Roy purchased the Westjet shares over a period of time. Several years ago, he purchased 1.100 shares for $20 per share. In January of the previous taxation year, Dr. Roy purchased 700 shares for $19 per share. In April of the previous taxation year, Dr. Roy sold 1,300 shares at $20 per share to buy a gift for his wife. In June of the current taxation year, Dr. Roy purchased 1,050 shares for $28 per share. In October of the current taxation year, Dr. Roy purchased another 1,400 shares for $34 per share. In December of the current year, Dr. Roy sold all of his remaining Westjet shares. There are no brokerage fees on any of the Westjet share transactionsStep by Step Solution
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