Question
George Peters is single and has provided you his income tax information for 2019 as follows Income from property Rental property $ 110,000 Loss from
George Peters is single and has provided you his income tax information for 2019 as follows
Income from property Rental property $ 110,000
Loss from consulting business 14,000
Capital gain on sale of shares of public corporation 10,000
Loss on sale of personal-use property 800
Taxable capital gain on sale of land 24,000
Loss on sale of small business corporation shares 20,000
Gain on disposal of listed personal property (painting) 14,000
Loss on sale of listed personal property (rare coins) 8,000
Capital gain from disposition of principal residence 50,000
Capital loss on sale of shares of public corporation 2,000
Deductible RRSP contributions 6,000
Loss from consulting business 10,000
At the beginning of 2019 there was an unclaimed listed personal property loss carryover from 2015 of $4,000.
A taxable capital gain of $12,000 was realized in 1997 on the disposition of small business corporation shares. George claimed a capital gain deduction (section 110.6) of $9,000 in 1997 as a result of this disposition.
Required:
Based on the above information, determine Georges income for 2019 in accordance with the ordering rules of section 3 of the ITA for the taxation year 2019. Your answer must include all the applicable subsections, subparagraphs and clauses in section 3.
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