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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. B. Geoffrey owns 3200 shares of Baxter Ltd. with an adjusted cost base of $13 per share. On May 15, 2019, he sells all 3200 Baxter Ltd. shares at $6 per share. On May 20, 2019, he acquires 1250 shares of Baxter Ltd. at a cost of $4 per share and is still holding these shares at the end of the year. 1. On July 6, 2019, Geoffrey sells a capital property (28 Malpass Road) with an adjusted cost base of $130000 or proceeds of disposition of $370000. 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 ($290000) 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 $63000. In 2012, he also purchased a cottage in Muskoka for $100000. In November, 2019, both properties are sold, the house for $219000 and the cottage for $164000. 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 $350. He sold it for $8000 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.Item Relevant Asset number Disposal date Asset name Description of tax implication associated with asset disposal: 1 July 20, 2019 Ted. Ltd shares Allowable capital loss- Ted Ltd: July 20, 2019: (negative) 2 December 30, 2019 Ted. Ltd shares Taxable capital gain- Ted Ltd: December 30, 2019: 3 May 15, 2019 Baxter Ltd. Shares Allowable capital loss- Baxter Ltd.: (negative) 4 July 6, 2019 28 Malpass Road A) Capital gain before considering 2019 reserve: 4 July 6, 2019 28 Malpass Road B) Less: 2019 reserve taken: (negative) 4 July 6, 2019 28 Malpass Road C) 2019 Taxable capital gain /(A+B) *50%] 0.00 5 October 2018 17 Greenview Ave A) 2018 Reserve Added to Income in 2019: 5 October 2018 17 Greenview Ave B) 2019 Reserve taken: (negative) 5 October 2018 17 Greenview Ave C) 2019 Taxable capital gain [(A+B)*50%] 0.00 6 November 2019 London Ontario Home 2019 taxable capital gain (after principal residence exemption) 6 November 2019 Muskoka Cottage 2019 taxable capital gain (after principal residence exemption)
