Taxation # 2, George Brown College,Toronto

• Comparing two portfolios looking ahead to April 1^st 2024: Real Estate Portfolio vs Stock Portfolio
• Basically, your client wants to decide which portfolio they should keep until April 1^st 2024. They want you to tell them the outcomes of both portfolios upon complete dispositions on April 1^st 2024. Then they would like you to provide a recommendation as to which portfolio they should keep now (they only want to keep one portfolio and based on your advice will sell the other March 31^st 2023

Stock Portfolio

https://www.marketbeat.com/stocks/TSE/

Company	Symbol	Per Share $	Number shares	Total buying cost $	Current Price $	total sell
Royal Bank of Canada	RY	136.49	3505	$ 478,397.45	138.66	$ 486,003.30
Toronto-Dominion Bank	TD	91.49	4404	$ 402,921.96	92.66	$ 408,074.64
Enbridge	ENB	54.12	4501	$ 243,594.12	52.59	$ 236,707.59
Cash Left Over				$ 1,124,913.53		$ 1,130,785.53

Cash in hand	$1,124,957.72
Stock Bought	$1,124,913.53
Left over	$44.19
Unsold stocks today's market value	$1,130,785.53
Total Portfolio $ Value	$1,130,829.72

Real Estate Portfolio

https://www.realtor.ca/on/toronto/real-estate

I have 5 properties which I rent out and I am earning rental income every month. I am giving details of each property below.

Property #1

Condo Price	499,999	Bed Room	2
Maintenance	776	Washroom	1
Taxes	959	Square feet	1015
Insurance	25	Parking	Not Included
Internet	80	Interest	4.50%
Mortgage/M	1874.99	Bank	Scotia
Total	503,714
			Monthly Expense
Monthly Cost/ expense	(2835.9)		Maintenance	776
Gain from Rent out	3150		Taxes	79.91	959/12
Profit by Rent	314.1		Mortgage	1874.99
			Insurance	25
			Internet	80
			Total expenses	2835.9

Property # 2

Toronto, Ontario M3N2K9
Condo Price	275,000	Bed Room	2
Maintenance	780	Washroom	1
Taxes	959	Square feet	1015
Insurance	35	Parking	Not Included
Internet	80	Interest	4.50%
Mortgage/M	1031.25	Bank	Scotia
Total	277,885
			Monthly Expense
Monthly Cost/ expense	1996.16		Maintenance	780
Gain from Rent out	2250		Taxes/Month	79.91	959/12
Profit by Rent	253.84		Mortgage	1031.25
			Insurance	25
			Internet	80
			Total expenses	1996.16

Property # 3

1011-5 Massey SQ,East York
Condo Price	469,000	Bed Room	2
Maintenance	777	Washroom	1
Parking	55
Taxes	965	Square feet	1000
Insurance	25	Parking	Not Included
Internet	80	Interest	4.50%
Mortgage/M	1758.75	Bank	Scotiabank
Total	472,661
			Monthly Expense
Monthly Cost/ expense	1758.75		Maintenance	777
Gain from Rent out	2150		Taxes/Month	80.41	965/12
Profit by Rent	391.25		Mortgage	1758.75
			Insurance	25
			Internet	80
			Parking	55
			Total expenses	2776.16

Property # 4

Condo Price	499,000	Bed Room	2
Maintenance/Mo	848	Washroom	1
Parking	no
Taxes	1143	Square feet	1000
Insurance	20	Parking	Not Included
Internet	69	Interest	4.50%
Mortgage/M	1871.25	Bank	Scotia
Total	502,951
			Monthly Expense
Monthly Cost/ expense	2903.5		Maintenance	848
Gain from Rent out	3200		Taxes	95.25	1143/12
Profit by Rent	296.5		Mortgage	1871.25
			Insurance	20
			Internet	69
			Parking	0
			Total expenses	2903.5

Property # 5

Condo Price	635,900	Bed Room	3
Maintenance/Mo	873	Washroom	2
Parking	No
Taxes	1106	Square feet	1000
Insurance	20	Parking	Not Included
Internet	75	Interest	4.50%
Mortgage/M	2384.62	Bank	Scotia
Total	640,359
			Monthly Expense
Monthly Cost/ expense	3444.78		Maintenance	873
Gain from Rent out	3700		Taxes	92.16	1106/12
Profit by Rent	255.22		Mortgage	2384.62
			Insurance	20
			Internet	75
			Parking	0
			Total expenses	3444.78

Projections

• Real estate portfolio rental income and expense that part should be pretty straight forward
• However, Real estate dispositions will require research
• Stock portfolio projections will need to be anchored in historical data
• Calculate expected/projected capital gains and/or losses
• Calculate anticipated dividends
• Stock A trades at $10 today, $8 a year ago and $6 a year before that....What will it trade at next year?
• Stock B trades today at $33.90, last year at $27, year before at $21.....What will it trade at next year?
• Stock C trades today at $114.27. last year at $91.40, year before $86.10....What will it trade at next year?