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Please answer ASAP (appendix attached if required) On January 1, 2020, Ms. Bubkeh sold 400 shares of ABC Corp., a public Canadain corporation, for $35
Please answer ASAP (appendix attached if required)
On January 1, 2020, Ms. Bubkeh sold 400 shares of ABC Corp., a public Canadain corporation, for $35 per share. Her trading history in these shares was as follows: March 3, 2009 purchased 500 shares @ $26 per share September 3, 2010 purchased 450 shares @ $31 per share July 7, 2012 sold 500 shares @ $15 per share November 14, 2014 purchased 550 shares @ $12 per share Ms. Bubkeh also sold 500 shares of ESBC Inc., an eligible small business corporation, for $20/share. She had originally purchased the shares for $45/share. Additional information: Ms. Bubkeh claimed a capital gains exemption of $5,000 in 2018 for the first time. Required: Calculate Ms. Bubkeh's net taxable capital gain she will report on her 2020 tax return for the above transactions. Furthermore, show any loss carryforwards she would have for the next year. Show all calculations. TAX APPENDIX 2020 2020 INDIVIDUAL FEDERAL INCOME TAX RATES If taxable income is between $0 and $48,535 $48,536 and $97,069 $97,070 and $150,473 $150,474 and $214,368 $214,369 and any amount Tax on base amount Tax on excess SO 15% $7,280 20.5% $17,230 26% $31,115 29% $49,645 33% 2020 SELECTED NON-REFUNDABLE TAX CREDITS INDEXED AMOUNTS PERMITTED TO INDIVIDUALS FOR PURPOSES OF COMPUTING FEDERAL INCOME TAX The tax credits are 15% of the following amounts: Basic personal amount (if net income (NI) >= 33% tax bracket) $12,298 Basic personal amount (if net income (NI) =33% tax bracket) 12,298 Spouse, common-law partner or eligible dependant amount (if NI = 33% tax bracket) $12,298 Basic personal amount (if net income (NI) =33% tax bracket) 12,298 Spouse, common-law partner or eligible dependant amount (if NIStep by Step Solution
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