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Deborah Marx operates an unincorporated business which, during the taxation year ending December 31, 2018 has net business income of $28,000 and a taxable capital
Deborah Marx operates an unincorporated business which, during the taxation year ending December 31, 2018 has net business income of $28,000 and a taxable capital gain of $6,500 [(1/2)($13,000)]. In 2019, her business has a net loss of $85,000. In addition to this loss, a capital asset disposition results in an allowable capital loss of $10,800. Deborah has no other sources of income or deductions in either year. Assume that she wishes to minimize her net capital and non-capital loss carry overs at the end of 2019, without regard to her ability to claim her tax credits for the preceding year (2018). Calculate her Net Income For Tax Purposes and Taxable Income for 2018 and 2019 and any amended amounts for 2018. Indicate the amount and type of any losses available for carry forward at the end of 2019. Deborah Marx operates an unincorporated business which, during the taxation year ending December 31, 2018 has net business income of $28,000 and a taxable capital gain of $6,500 [(1/2)($13,000)]. In 2019, her business has a net loss of $85,000. In addition to this loss, a capital asset disposition results in an allowable capital loss of $10,800. Deborah has no other sources of income or deductions in either year. Assume that she wishes to minimize her net capital and non-capital loss carry overs at the end of 2019, without regard to her ability to claim her tax credits for the preceding year (2018). Calculate her Net Income For Tax Purposes and Taxable Income for 2018 and 2019 and any amended amounts for 2018. Indicate the amount and type of any losses available for carry forward at the end of 2019
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