Mr. Dalip Barker provides you with the following financial information for the years 2018 through 2021. 2018 During this year, Dalip starts a new business which, during its first year of operations, has business income of $19,700. In addition, because of his love of the outdoors, ha begins to carry on a farming business on a part time basis, The farming business experiences a loss of $11.200 in its first year of operation. Using the proceeds of an inheritance, he makes a number of investments in common shares during the year In 2018. these Investments pay $1 860 In eligible dividends. As the result of dispositions in the year, he realizes $1.350 in capital gains and $4,630 in capital losses. Requirement 1: Calculate the 2018 Net Income, Calculate the 2018 Taxable Income 2018 Restricted Farm Loss, Net Capital loss can be carried over 2019 This year Dalip's business has a business loss of $15,300. However, the farming business reports income of $2,200. Also during 2019, he receives $2,341 in eligible dividends and realizes capital gains of $2 200. He has no capital losses during the year. Requirement 2: Calculate the 2019 Net Income, Calculate the 2019 Taxable Income The maximum carry back to 2018, 2018 Restricted Farm loss 2018 Net Capital Loss, 2019 Non capital loss can be carried forward 2020 Dalip's business income for the year is $32,900. In addition, the farming business reports income of $3,450. He receives eligible dividends of $3,150 and realizes capital gains of $4,200. Once again, no capital losses are realized. Requirements 3: Calculate the 2020 Net Income, Calculate the 2020 Taxable Income Carry forward of the 2018 Restricted Farm Loss 2021 Dalip's business experiences a business loss of $20,800. In addition, his farming business has a loss of $2 250. Although he receives $5,160 in eligible dividends. he is forced to sell some investments for much needed funds and realizes capital gains of $4,940 and capital losses of $15,970. Requirements 4; Calculate the 2021 Net Income, Calculate 2021 Taxable Income 2021 Non Capital Loss, 2021 Net Capital Loss The 2020 Non Capital Loss can be carried forward to the end of 2021. Because of the nature of his forming activities, Dalip's form losses are restricted All of the dividends received are from taxable Canadian corporations. When he has a choice, he would like to deduct the maximum amount of any net capital loss carry overs and carry back any losses to the earliest possible year. Prior to 2018, Dalip was a full-time student with no federal income tax payable. This means that it would not be useful to carry back any type of lows to years prior to 2018. Dalip requires $15,300 in taxable income in each year to fuly utilize his available tax credits. In applying carry over amounts, Dalip's Taxable Income should not be reduced below $15 300
