Question
Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B income.
Mr. Geoffrey Guo had a variety of transactions during the 2019 year. Determine the total taxable capital gains included in Mr. Guo's division B income. The transactions included: 1. On January 1, 2019, Geoffrey purchased 2100 shares of Ted Ltd. at $25 per share and 500 shares at $30 per share on February 5, 2019. He sold 250 of these shares on July 20, 2019 at $23 per share. 2. On September 30, 2019, he purchased an additional 850 shares of Ted. Ltd. at $29 per share. On December 30, 2019, he sold 280 Ted Ltd. shares at $65 per share. 3. Geoffrey owns 3100 shares of Baxter Ltd. with an adjusted cost base of $12 per share. On May 15, 2019, he sells all 3100 Baxter Ltd. shares at $5 per share. On May 20, 2019, he acquires 1200 shares of Baxter Ltd. at a cost of $4 per share and is still holding these shares at the end of the year. 4. On July 6, 2019, Geoffrey sells a capital property (28 Malpass Road) with an adjusted cost base of $140000 for proceeds of disposition of $375000. In 2019, he receives $80,000 in cash, along with the purchaser's note for the balance of the proceeds. The note is to be repaid in full ($295000) in five years. Assume that Geoffrey deducts the maximum capital gains reserve. 5. In October, 2018, Geoffrey sold a different capital property (17 Greenview Ave) with an adjusted cost base of $110000 for proceeds of disposition of $200000. In 2018, he received $75,000 in cash, along with the purchaser's note for the balance of the proceeds. The note is to be repaid at the rate of $2,500 per year beginning in 2019. He receives the 2019 payment of $2,500 in full. Assume that Geoffrey deducts the maximum capital gains reserve in both 2018 and 2019. 6. Geoffrey purchased his first home in London, Ontario in 2008 at a cost of $75000. In 2012, he also purchased a cottage in Muskoka for $100000. In November, 2019, both properties are sold, the house for $207000 and the cottage for $172000. Both of these properties can qualify as a principal residence for him. He will designate the principal residence exemption in such a way that will minimize the taxable capital gains that he must report on the sale of these two properties. 7. Geoffrey owned a personal sailboat with an adjusted cost base of $30000. He sold it for $72000 in October 2019. 8. Geoffrey personally owned an oil painting that he purchased many years ago for $450. He sold it for $9000 in June 2019. 9. Geoffrey kept a bench on the front porch of his home which cost him $1600 several years ago. He sold it for $150 in January 2019. Required: Determine the total net taxable capital gains included in paragraph 3(b) of Mr. Guo's divison B income. Respond on "P3- Response" tab. Final answers for each line item should be typed into the yellow boxes. Please show all your backup work in the designated green space for full marks.
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