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The following three cases make different assumptions with respect to the amounts of income and deductions of Ms. Salma Saints for the current year: Case
The following three cases make different assumptions with respect to the amounts of income and deductions of Ms. Salma Saints for the current year: Case A Case B Case C Employment Income 35,000 33,000 16,000 Employment Loss 0 0 0 Business Income 0 0 22,000 Business Loss 10,000 39,000 0 Property Income 12,000 14,000 0 Property Loss 0 0 21,000 Taxable Capital Gains 42,000 36,000 32,000 Allowable Capital Losses 18,000 42,000 69,000 Subdivision e Deductions (RRSP) 4,000 7,000 5,000 Required: (using the format from previous examples discussed in class) 1. Calculate net income for tax purposes 2. State the amounts that can be carried over, how many years can it be carried forward or back , and which income can it be deducted against. a) Net capital loss b) Non-capital loss
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