Dr. James Harold is 35 years old and is in the process of geting a divorce. As part of the divorce proceedings, Dr. Harold must sell a number of his assets and holdings in order to divide the assets o the marroge and pay a large settlement to his former spouse, Janette Harold. Dr. Harold has provised you with the following list of assets that he soid in the current year, including the asset cost and the procends of cisposion: Requirement 1. Calculate the capital gain (or loss) tor each of the dispositions in the current tacation year. Fil in the tabie below showing the caphal gain (or loss) for each ibem. (Round your answers to the marest cent. Enter losses with parentheses or a minus sign) Additional information: The home was the principal residence for Dr. Harold and his former spouse for 10 years, ending in the current taxation year. Last year, Dr. Harold 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. Harold's principal residence for the two most recent taxation years.) Therefore, this home cannot be claimed as Dr. Harold's principal residence for those years. Additional information: Dr. Harold 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. Harold paid legal fees related to this sale of shares of $16,520. Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Asset Description Vacant land $48,000.00 $310,000.00 Ad id inal information: Dr. Harold bought this vacant land as an investment property. Since its purchase, the land has been vacant and Dr. Harold has not earned any income on the land, but he paid $2,500 in property taxes and $475 on mortgage interest on the and during this time. Additional information: Dr. Harold 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. Harold paid legal fees related to this sale of shares of $16,520. Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Asset Description Westjet shares Proceeds of Disposition $50 per share (December) Original Price Paid Various Additional information: Dr. Harold purchased the Westjet shares over a period of time. Several years ago, he purchased 1,100 shares for $21 per share. In January of the previous taxationkear, Dr. Harold purchased 800 shares for $19 per share. In April of the previous taxation year, Dr. Harold sold 1,300 shares at $20 per share to buy a gift for his wife. In June of the current taxation year, Dr. Harold purchased 1,100 shares for $29 per share. In October of the current taxation year, Dr. Harold purchased another 1,400 shares for $35 per share. In December of the current year, Dr. Harold sold all of his remaining Westjet shares. There are no brokerage fees on any of the Westjet share transactions. Required 1. Calculate the capital gain (or loss) for each of the dispositions in the current taxation year. 2. Calculate the net taxable capital gain for Dr. James Harold for the current year. 3. Dr. King has a capital loss carry-forward from a prior year. He asks you the following questions: (a) What are the rules in regard to the carry-back and carry-forward rules for capital losses? Do these rules differ from the rules that apply to non-capital losses? (b) Capyal loss carry-forward: Can a taxpayer choose when to apply capital loss carry-forwards? Give an example of when a taxpayer may choose not to deduct capital loss carry-forwards in the current year, even though the taxpayer has realized a taxable capital gain in the year. (c) Dr. Harold asks you about the "ordering rules" in regard to loss carry-forwards. Explain your response. Requirement 1. Calculate the capital gain (or loss) for each of the dispositions in the current taxati Fill in the table below showing the capital gain (or loss) for each item. (Round your answers to the
