Question
Determine the loss to be reported for tax purposes for each of the following dispositions. An individual sold a Class 10 depreciable asset for $10,000.
Determine the loss to be reported for tax purposes for each of the following dispositions.
An individual sold a Class 10 depreciable asset for $10,000. The asset cost $25,000 when it was purchased. The UCC of Class 10 was $16,000 before the sale. After the sale, there are no assets left in Class 10.
An individual sold their home for $180,000. The home cost $210,000 when it was purchased.
An individual transferred shares of X Ltd. worth $18,000 to their RRSP. They paid $25,000 for the shares when they purchased them a few years ago.
An individual sold 100 shares of N Ltd. for $10,000 on December 15, 2021. The ACB of the 100 shares was $17,000. On January 5, 2022, the value of N Ltd. declined further and they repurchased 40 shares of N Ltd. for $3,200.
On June 30, 2021, Old Inc. sold its investment in shares of Blue Ltd. (1% of Blue's outstanding shares) to New Inc. for $30,000. The shares had been acquired four years previous for $40,000. Carla Petrov is the controlling shareholder of both Old Inc. and New Inc. In February 2022, New Inc. sold the shares of Blue Ltd. for $46,000. The taxation year end for New Inc. and Old Inc. is December 31.
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