It is February $15,2024,$ and you are visiting with your friends Carl and Ellie Fredricksen at their Calgary home. Carl is $63$ years old and Ellie is $65$ years old.

Carl: We have big news. Ellie and I are moving to Kelowna. We found a house near the lake that we take possession on March $1.$ We put our Calgary home on the market and it sold in September for $$842,000.$

You congratulate them but say that you will miss your friends.

Ellie: Hopefully you can come visit often. Carl is going to retire but I am going to work part time at a knitting store. It$$s going to be an expensive move. I sure hope we can claim some moving expenses.

You state that there are some criteria that must be met to claim moving expenses and you would be happy to prepare an analysis to see if they qualify. You will also explain any restrictions that may impact them.

Carl: I$$m hoping that we don$$t have to pay taxes on the sale of our Calgary house. I$$m the sole owner and I$$ve never claimed the principal residence exemption. I bought the house in $2015$ for $$630,000.$ Ellie claimed the principal residence exemption for the years $2010$ to $2017$ when she sold a cottage she owned. Could you determine if any of the gain on the house will be taxable?

You reply that you will prepare a schedule to calculate this.

Carl: Great. We used some of the house proceeds to purchase another rental property, a condo in downtown Calgary. We also still have the Okotoks townhouse we$$ve been renting. Could you determine the tax impact of our rental properties for $2023.$ Here is all the information $($Exhibit $1).$

Required: Using MICROSOFT Excel ONLY, respond to the following requirements. All work must be shown to obtain full marks.

Part A

Prepare a schedule to analyse whether Carl and$/$or Ellie can claim moving expenses when they move to Kelowna.

Part B

Prepare a schedule to determine the amount that Carl must include in his income from the sale of the Calgary home.

Part C

Prepare an analysis to determine the rental income from rental properties. Also, provide CCA sc

Exhibit I

Rental Properties Information

We purchased the Okotoks townhouse in $2014$ for $$421,000.$ At the end of $2022$ it had a UCC balance of $$399,000.$ Our last tenant moved out at the end of June, so we did some repairs before our new tenant moved in on September $1.$ We had the following revenue and costs for the townhouse in $2023$:

Rents $$28,600$

Utilities $5,600$

Property taxes $3,800$

Mortgage payments $16,400($includes $10,200$ of interest$)$

Painting $2,000$

New appliance $1,400$

Carpet steam cleaning $300$

Condo fees $2,600$

Tenant interview at The Keg restaurant $180$

The condo was purchased for $$460,000$ on November $1$ with a down payment of $$250,000$ and an $8\%$ mortgage payable for the remainder. A young couple began renting it on December $1$ for $$2,200$ per month. We had property taxes of $$530$ and utilities of $$1,710$ for the $2$ months.

Both properties are owned $100\%$ by Ellie.