Question
Part A Mr. Jerry Haggard owns a house in Calgary, as well as a cottage in Canmore.He purchased the house in 2006 for $186,000.The cottage
Part A Mr. Jerry Haggard owns a house in Calgary, as well as a cottage in Canmore.He purchased the house in 2006 for $186,000.The cottage was purchased in 2009 for $105,000.During December 2020, both properties are sold, the house for $263,000 and the cottage for $197,000.He has lived in the Calgary house during the year but has spent his summers in the Canmore cottage.Determine the minimum capital gain that he must report on the 2020 sale of the two properties. (7 marks)
Part B During 2019, Jack Harris sells a capital asset with an adjusted cost base of $87,200 for proceeds of $105,300.He receives a down payment of $5,300 in 2019, a second payment of $50,000 in 2020, and a final payment of $50,000 in 2021.What is the minimum amount thatJack will have to include in Net Income For Tax Purposes in 2019, 2020, and 2021 as a result of this sale? (10 marks)
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