Question
Question a. Nisha Patel has a full time job as a nurse in her local hospital. In her spare time she has a goat farming
Question a.
Nisha Patel has a full time job as a nurse in her local hospital. In her spare time she has a goat farming operation. The goat farm began in 2016, and resulted in a loss of $10,000. She deducted the maximum allowable amount of the loss against her 2016 income. In 2017, most of the problems had been worked out, and Nisha had a profit from the farm operation of $5,000, as well as employment income of $100,000. Determine Ms. Patel's taxable income for 2017.
| $101,250 |
| $100,000 |
| $95,000 |
| $105,000 |
Question b.
Which of the following statements about Allowable Business Investment Losses is correct?
| If they are not used during the current year, they are added to the net capital loss balance. |
| If they are not used during the current year, they are added to the non-capital loss balance. |
| They can only be deducted against business income. |
| They are losses that result from the disposition of shares or debt in a Canadian controlled public corporation. |
Question c.
When an individual makes a gift of publicly traded securities to a registered charity, any capital gain that results from the disposition is deemed to be nil.
True | |
False |
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