Problem $10-3$ Net Income and Tax Credits

In $2023,$ William Barker, who is single, earned the following income and incurred the following losses:

Employment income $ $18,000$

Business loss $ $(5,000)$

Taxable capital gains $ $5,000$

Property income $($interest$)$ $ $16,000$

Allowable capital loss from the sale of shares of public corporations $ $(11,000)$

Allowable capital loss from the sale of shares of a CCPC that qualifies as a small business corporation $ $(4,000)$

At the end of $2022,$ William had:

unused net capital losses of $ $18,000$ and

unused non$-$capital losses of $$39,000.$

For $2023,$ William does not want to pay any federal tax and is entitled to

a deduction for CPP enhanced contributions of $$145,$

the basic personal tax credit $$15,000,$

the Canada employment credit $$1,287$ and

the CPP & EI credit amount of $$1,011.$

Required:

$1.$ Calculate William$$s Taxable income which would result in no tax liability after deducting tax credits.

$2.$ Calculate the maximum amount of non$-$capital losses and net capital losses remaining for carry$-$forward after $2023?($Reductions to the loss balances should be entered as negative amounts. All other inputs should be entered as positive amounts.$)$