Question
Stuart Planter sold his small business shares in 20x6 and had a taxable capital gain of $85,000. Stuart was able to use his lifetime capital
Stuart Planter sold his small business shares in 20x6 and had a taxable capital gain of $85,000. Stuart was able to use his lifetime capital gains exemptions to offset the taxable capital gain from the sale of his small business shares. Stuart has asked you to help him prepare his 20x6 tax return, and provides you with the following additional information: Stuart contributed $5,000 to his TFSA Stuart also received a $1,000 actual dividend from eligible sources in 20x6 Stuart also received a $5,000 actual dividend from non-eligible sources in 20x6 Stuart earned business income of $ 42,000 in 20x6 Stuart had a limited partnership loss of $ 12,000 in 20x6. Required: Using tax rates and amounts applicable for 2020, calculate the following: Calculate Stuarts net income, taxable income, and regular taxes payable for 20x6 Calculate Stuarts adjusted taxable income and taxes payable using the AMT rules for 20x6 Determine if Stuart must pay AMT and what amount will amount will be carried forward if any.
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