Question
Cedric sold to Hermione, his shares of stock in Hogwarts Corporation (a closely held domestic corporation) for P400,000 when its fair market value was P850,000.
Cedric sold to Hermione, his shares of stock in Hogwarts Corporation (a closely held domestic corporation) for P400,000 when its fair market value was P850,000. The shares were purchased by Cedric five years ago for P500,000. How much is the donor's tax due?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To compute the donors tax due on the sale of shares we need to determine the capital gains realized ...
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Introduction To Federal Income Taxation In Canada
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
33rd Edition
1554965020, 978-1554965021
