Please answer this above question with reference to this below question/solution:

Karen Jones is a businesswoman who invests and works in a variety of businesses. Karen's main business, Watch-Yo-Self, is a service that assists people in building their own personal style, with a main focus on watch sales. In addition to earning business income from Watch, Karen also runs a small farm and earns regular investment income. In the past Karen consulted with the CRA and found that she would be considered a sideline farmer. Because Karen has been so busy with her businesses, she has not filed her tax return for the last three years. She is hoping to get some assistance to minimize her taxable income, but not beyond $24,000, as she believes she will have sufficient credits to cover this amount. Karen's financial information for 2017 -2019 is as follows: Karen acquired her home and received a loan from her RRSP under the Home Buyer's Plan in the amount of $22,500 in 2016 . Karen has never made any repayments to her RRSP for these amounts and is unsure as to what the impacts would be from this transaction. Required: Determine Karen's taxable income for the 2017 - 2019 taxation year, utilizing any additional deductions that would be available to Karen. Because of the nature of her farming activity, Ms. Breau's farm losses are restricted and are therefore subject to ITA 31. The dividend income is from taxable Canadian corporations and the amount includes the gross up. When she has a choice, she would like to deduct the maximum amount of any net capital losses and carry back any loss carry overs to the earliest possible year. None of Ms. Breau's losses can be carried back to a year that is before 2019. Assume that Ms. Breau requires $15,000 in taxable income in each year to fully use her available tax credits. Required: Calculate Ms. Breau's minimum net income and taxable income for each of the four years. In applying carry over amounts, do not reduce Ms. Breau's taxable income below $15,000, the amount required to fully use her tax credits. Indicate the revised amounts for any years to which losses are carried back. Also indicate the amount and types of loss carry overs that would be available for each year. 2019 The required information can be calculated as follows: As noted in the problem, none of the losses can be camled back before 2019. This would leave the following 2019 loss carry over balances: - 2019 Restricted Farm Lass - 2019 Net Capital Loss [(\$2.100 (ITA 3(b)(iii) - $600 (ITA 3)(b)(i))] $3,750 81.500 Since there are $1,000 of net taxable capital gains this year, and the problem states that Ms. Breau would like to deduct the maximum amount of net capital losses, the net capital loss of $1,000 is applied against the ITA 3(b) amount of $1,000, which effectively increases the 2020 non-capital loss. The 2020 non-capital loss is calculated as follows: The entire 2020 non-capital loss could be carried back to 2019, but since Ms. Breau requires $15,000 in taxable income to fully utilize her tax credits, no carry back is contemplated. There would be the following loss balances at the end of 2020 : There would be the following loss balances at the end of 2021: 2019 Restricled Farm Loss ($3,750$3,150)$600 2022 Analysis The required information can be calculated as follows: The 2022 non-capital loss can be calculated as follows: Although technically the farm loss is accounted for separately from the non-capital loss, since the farm loss is less than $2,500 it is treated as an unrestricted farm loss and can be applied against all types of income. Given the carry over rules are the same, we have treated this farm loss as part of the non-capital loss carry over although technically the 2022 non-capital loss would be $12,550 and the 2022 Farm loss would be $2,000. The preceding loss carry over of $14,550 is avallable for carry back three years to 2019. The 2022 net capital loss would be equal to $5,000 [ITA 3K b)(ii) $7,250 - ITA 3(b)(i) of $2,250 )]. $1,500 of the 2022 net capital loss can be applied to the 2021 year as there are $1,500($2,000$500) in net taxable capital gains remaining in 2021 as the basis for a carry back. This leaves a balance of $3,500 (\$5,000-\$1,500). If both the $14,550 non-capital loss and the $1,500 net capital loss were carried back to 2021, the result aculd the a Taxable Income of 510,363 . Ins than the $15,000 that is required to fully utilze Ms. Breau's available taxcredits. As the 2021 net capital loss can on'y be deducted to the extent of net laxable capital gains, it would be advisable to first claim the full amount of this loss. Based on this view, the ceduction of the 2022 non-cavel lcss wall be limited to $9,913 ($26,413 - \$15,000 - \$1,500), en amount that wil proude tor the full use of Ms. Breau's 2021 tek cied:s. These loss applications Iesve M s. Bnay with her required 315,000 in 2021 taxable income. The following logs balances rertain of the end of 2022 : Karen Jones is a businesswoman who invests and works in a variety of businesses. Karen's main business, Watch-Yo-Self, is a service that assists people in building their own personal style, with a main focus on watch sales. In addition to earning business income from Watch, Karen also runs a small farm and earns regular investment income. In the past Karen consulted with the CRA and found that she would be considered a sideline farmer. Because Karen has been so busy with her businesses, she has not filed her tax return for the last three years. She is hoping to get some assistance to minimize her taxable income, but not beyond $24,000, as she believes she will have sufficient credits to cover this amount. Karen's financial information for 2017 -2019 is as follows: Karen acquired her home and received a loan from her RRSP under the Home Buyer's Plan in the amount of $22,500 in 2016 . Karen has never made any repayments to her RRSP for these amounts and is unsure as to what the impacts would be from this transaction. Required: Determine Karen's taxable income for the 2017 - 2019 taxation year, utilizing any additional deductions that would be available to Karen. Because of the nature of her farming activity, Ms. Breau's farm losses are restricted and are therefore subject to ITA 31. The dividend income is from taxable Canadian corporations and the amount includes the gross up. When she has a choice, she would like to deduct the maximum amount of any net capital losses and carry back any loss carry overs to the earliest possible year. None of Ms. Breau's losses can be carried back to a year that is before 2019. Assume that Ms. Breau requires $15,000 in taxable income in each year to fully use her available tax credits. Required: Calculate Ms. Breau's minimum net income and taxable income for each of the four years. In applying carry over amounts, do not reduce Ms. Breau's taxable income below $15,000, the amount required to fully use her tax credits. Indicate the revised amounts for any years to which losses are carried back. Also indicate the amount and types of loss carry overs that would be available for each year. 2019 The required information can be calculated as follows: As noted in the problem, none of the losses can be camled back before 2019. This would leave the following 2019 loss carry over balances: - 2019 Restricted Farm Lass - 2019 Net Capital Loss [(\$2.100 (ITA 3(b)(iii) - $600 (ITA 3)(b)(i))] $3,750 81.500 Since there are $1,000 of net taxable capital gains this year, and the problem states that Ms. Breau would like to deduct the maximum amount of net capital losses, the net capital loss of $1,000 is applied against the ITA 3(b) amount of $1,000, which effectively increases the 2020 non-capital loss. The 2020 non-capital loss is calculated as follows: The entire 2020 non-capital loss could be carried back to 2019, but since Ms. Breau requires $15,000 in taxable income to fully utilize her tax credits, no carry back is contemplated. There would be the following loss balances at the end of 2020 : There would be the following loss balances at the end of 2021: 2019 Restricled Farm Loss ($3,750$3,150)$600 2022 Analysis The required information can be calculated as follows: The 2022 non-capital loss can be calculated as follows: Although technically the farm loss is accounted for separately from the non-capital loss, since the farm loss is less than $2,500 it is treated as an unrestricted farm loss and can be applied against all types of income. Given the carry over rules are the same, we have treated this farm loss as part of the non-capital loss carry over although technically the 2022 non-capital loss would be $12,550 and the 2022 Farm loss would be $2,000. The preceding loss carry over of $14,550 is avallable for carry back three years to 2019. The 2022 net capital loss would be equal to $5,000 [ITA 3K b)(ii) $7,250 - ITA 3(b)(i) of $2,250 )]. $1,500 of the 2022 net capital loss can be applied to the 2021 year as there are $1,500($2,000$500) in net taxable capital gains remaining in 2021 as the basis for a carry back. This leaves a balance of $3,500 (\$5,000-\$1,500). If both the $14,550 non-capital loss and the $1,500 net capital loss were carried back to 2021, the result aculd the a Taxable Income of 510,363 . Ins than the $15,000 that is required to fully utilze Ms. Breau's available taxcredits. As the 2021 net capital loss can on'y be deducted to the extent of net laxable capital gains, it would be advisable to first claim the full amount of this loss. Based on this view, the ceduction of the 2022 non-cavel lcss wall be limited to $9,913 ($26,413 - \$15,000 - \$1,500), en amount that wil proude tor the full use of Ms. Breau's 2021 tek cied:s. These loss applications Iesve M s. Bnay with her required 315,000 in 2021 taxable income. The following logs balances rertain of the end of 2022