Question ( Federal income Taxation 2020)

Alex own three properties in Toronto. Property 1 is being rented out to his eldest son, George, is currently attending University with two other room mates. Property 2 is being rented by an arm's length party. Property 1 cost $480,000( Land $200,000 and building $280,000) and property 2 cost $540,000( Land $300,00 and building $240,000).They were both purchased on January1, 2020. The income and expense incurred in relation to the property for the year were as follows:

Property 1

Rental income -two students $17,400

Rental income-George $12,000

Heat $1,200

Hydro $2,400

Water $900

Repairs ( including a new sunroom addition in October

For $33,000) $35,000

Property tax $3,500

Mortgage payments ( includes $14,000 of interest) $24,000

Loan payments (includes $1,880 of interest ) $3,440

Property 2

Rental income - $26,400

Heat $1,500

Hydro $2,800

Water $1,000

Property tax $9,000

Repairs (repairs of a leaking roof and plumbing repairs) $9,000

Mortgage payments ( includes $16,000 of interest) $26,000

Rental Property 3 was sold in January 2020 resulting in no rental income and no expenses incurred. Property 3 original cost was $250,000 and building $150,000). It had a UCC balance at the time of $110,000 and the property was sold for $425,000.Commissions of $20,000 were charged by a Real estate Agent on the sale and a lawyer charged $2,500 to close the deal. The Real Estate agent spent $3,000 to stage the property.

Require: Calculate Alex's income for tax purposes for 2020: Explain why anything was omitted