Gege Xu retired in April $2023$ and moved from Thunder Bay to Vancouver Island. During her retirement, she plans to accept the

occasional small consulting contract. Her financial transactions for $2023$ are summarized here.

Gege sold her home in Thunder Bay for $$240,000.$ She paid a real estate commission of $$8,000$ and legal fees of $$2,000$ to

complete the sale. Gege had purchased the home in $2017$ for $$110,000.$ In $2020,$ she purchased a summer cottage for $$74,000.$ She

sold it in $2023$ for $$175,000.$ She paid a legal fee of $$1,000$ to draw up the sale agreement. Gege had used the summer cottage

regularly for summer vacations.

Gege's gross salary from January $1,2023,$ to her date of retirement was $$30,000.$

Three years ago, Gege purchased $20\%$ of the shares of ABC Ltd$.$ and $15\%$ of the shares of XYZ Ltd$.$ Both are Canadian$-$controlled

private corporations. ABC's assets consist entirely of investment properties, including shares, bonds, and rental properties. All of

$xYZ\text{'}$s assets are used to operate an active business. Gege sold her shares in both corporations in $2023.$ Details of the transactions

are outlined in the following chart.

Gege received $$9,000$ in cash for the ABC Ltd$.$ shares, with the balance payable at the rate of $$9,000$ annually for the next six years.

The XYZ Ltd$.$ shares were sold for cash.

A local farmer has been trying to purchase Gege's hobby farm land. Gege purchased the land in $2016$ for $$69,000.$ In July $2023,$

Gege received $$2,000$ from the farmer, for which she granted him an option to purchase the land. The option is open for two years

and allows the farmer to purchase the land for $$100,000.$

In February $2023,$ Gege paid an investment counsellor $$300$ for investment advice. The same month, she purchased $5,000$ units of

Q mutual fund for $$10$ per unit. An additional $3,000$ units were purchased in April $2023,$ at $$14$ per unit. On October $31,2023,$ Q fund

distributed $$1,500$ of taxable Canadian dividends, which Gege reinvested in the fund, thereby acquiring another $100$ units. On

December $3,2023,$ she sold $2,000$ units of $Q$ at $$16$ per unit. At year$-$end, the fund units were valued at $$18.$

To obtain the money to complete the purchase of the $Q$ mutual fund units, Gege increased the mortgage on her house by $$20,000.$

She incurred interest of $$500$ on this amount before paying off the mortgage when the house was sold.

In $2022,$ Gege invested in a real estate project with her friend, a real estate agent and part$-$time developer. Together, they

purchased a parcel of land and constructed four town homes at a cost of $$500,000.$ In $2023,$ the four town homes were sold for

$$580,000$ to a single buyer, who plans to use them as rental properties. Gege's share of the gain was $40\%.$ No cash was invested in

the project, which had been funded entirely with bank financing.

Gege sold shares of X Ltd$.($a public corporation$)$ for $$18,000$ during the year. She acquired the shares in $2018$ for $$25,000.$

Most of Gege's investments have been in blue$-$chip shares that pay dividends. Recently, she decided to invest and trade in

speculative Canadian mining shares and commodity futures. Before she does so$,$ she wants to know the tax implications of gains

and losses on such trading.

Requlred:

Calculate Gege's net income for tax purposes for the $2023$ taxation year in accordance with the aggregating formula of section $3$ of

the Income Tax Act. Assume Other Deductions total $$5,000.$