complete solution/explanation A taxpayer has the following data for the years 2019 and 2020 2019 Gross income
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complete solution/explanation
A taxpayer has the following data for the years 2019 and 2020
2019
Gross income - 760,000
Business expenses - 380,000
Capital loss (capital asset was acquired on January 15, 2018 and was sold on March 15, 2018) - 60,000
Capital gain (capital asset was acquired on January 15, 2016 and was sold on March 31, 2018) - 40,000
2020
Gross income - 500,000
Business expenses- 350,000
Capital gain (capital asset held for 12 months) - 80,000
Capital loss (capital asset held for 2 years) - 20,000
DETERMINE THE FOLLOWING:
- Taxable net income in 2019 assuming the taxpayer is a domestic corporation
- Taxable net income in 2020 assuming the taxpayer is a domestic corporation
- Taxable net income ins 2019 assuming the tax payer is a resident citizen
- Taxable net income ins 2020 assuming the tax payer is a resident citizen
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