The following information pertains to Joan Fairlawn's 2019 taxation year: 1. At the beginning of 2019, Joan owned 1.000 units of the Torstar Income Trusts. The adjusted cost base of these units at that time was $12 per unit. During 2019, the trust had a distribution of $2.00 per unit, all of which was interest income. Joan had all of this distribution invested in additional units at $16 per unit. In December, 2019, all of her Torstar units were sold for $18 per unit 2. At the beginning of 2019, Joan owned a tract of land with an adjusted cost base of $125,000. Joan had owned the land for a number of years, hoping at some point to construct a rental property on the site. However, in 2019 she receives an unsolicited offer for the property of $375,000. She accepts the offer and immediately receives a payment of $100,000. The remaining $275,000 will be paid in 11 annual instalments of $25,000, beginning in 2020. Joan would like to use a capital gains reserve to defer as much 2019 taxation as possible. 3. Joan owns a painting with an adjusted cost base of $2,000. During 2019, she sells this painting for $22,000. 4. Joan also sells off an antique grandfather clock for $5,000, which when she inherited 25 years ago had a value of $9,000. The decline in value is a result of some damage done to the clock by Joan's kids when they were young. 5. Joan has the following loss carryover balances: Net capital loss carryover (other than LPP) $3,500 Net LPP capital loss carryover 4,000 Required - Considering the above information, what amount of net taxable capital gains should Joan report on her 2019 tax return in 3(b)? The following information pertains to Joan Fairlawn's 2019 taxation year: 1. At the beginning of 2019, Joan owned 1.000 units of the Torstar Income Trusts. The adjusted cost base of these units at that time was $12 per unit. During 2019, the trust had a distribution of $2.00 per unit, all of which was interest income. Joan had all of this distribution invested in additional units at $16 per unit. In December, 2019, all of her Torstar units were sold for $18 per unit 2. At the beginning of 2019, Joan owned a tract of land with an adjusted cost base of $125,000. Joan had owned the land for a number of years, hoping at some point to construct a rental property on the site. However, in 2019 she receives an unsolicited offer for the property of $375,000. She accepts the offer and immediately receives a payment of $100,000. The remaining $275,000 will be paid in 11 annual instalments of $25,000, beginning in 2020. Joan would like to use a capital gains reserve to defer as much 2019 taxation as possible. 3. Joan owns a painting with an adjusted cost base of $2,000. During 2019, she sells this painting for $22,000. 4. Joan also sells off an antique grandfather clock for $5,000, which when she inherited 25 years ago had a value of $9,000. The decline in value is a result of some damage done to the clock by Joan's kids when they were young. 5. Joan has the following loss carryover balances: Net capital loss carryover (other than LPP) $3,500 Net LPP capital loss carryover 4,000 Required - Considering the above information, what amount of net taxable capital gains should Joan report on her 2019 tax return in 3(b)
