the mamage and poy a large setcement to his former apousn, Janotle Smith Dr. Smith has provided you with the following list of assets that he sold in the cuirent year, indudry the assat cost and the proceeds of disposition? Requirements 1. Calcalate the caghal gain for loss) for each of the dispositions in the current taxation year 2. Calculate the net taxable capital gain for Dr, Jacob Smith for the current yoar. 3. De. King has a capital loss carry forward trom a priar year. He asks you the fostowing questions: (a) What are the rules in regand to the carry-back and camy-forward rues for capital iosses? Do these rules differ from the rules that opply to nan-eapital lesses? (b) Capital loss caryy-forward: Can a taxpayor choose whed to apply capital loss carry.forwarda? Give an example of when a taxpoyer may. choose not to decuct captal kass carry-forwards in the current year, even though the taxpayer has realized a tawable capial gain in the year. (c) Dr. Smith asks you about the "ordering rules" in regard to loss carry forwards. Explain your response. Requirement 1. Calculate the capital gain for loss) for each of the dispositons in the curnent taxotion year. Fil in the table beiow showing the capital gain (or loss) for each linm. (Round your anseen to the nearest cent. Enter losses with paranthases or a minus aign) Requirement 2. Calculate the ret taxable capital gain for Di, Jacob Smith for the current year. (Rlound your answer to the neareat cent.) The net taxable gain for the year in Requirement S(a). What aro the rules in regard to the carry-back and carry-forward rulos for capital losses? Do these niles difer trom the rues shat apply to non-capital losses? Capital loss carryovers can be carried back years and carried fonward Capital loss carryovers diter from non-captail loss cavryovers as they can only be appited to the extent the taspayer has included in net inoome in the taxstion year. The net taxable goin for the year a Fiequiremeat (a). What ane the nules in regard to the carrybock and carry.forward nules for captu bsses? Do thase ries difee from the rubs that apply to nen-capital iosses? Capial lises carryomers con be cairied back yoars and carred forward motert the taxpayne has inclyded in net noome in the taxabon yeat. Requirement 3(b) Cepitai loss carry-forward: Can a taxpayer choose when to apply capial loss carryforwards? Give an example of when a taupayor may choose not to deduct eapeal loss carryitonwards in the current year, even though the taxpayer has realizod a taxable capital gain in the year. Taxpayen can choose whien to apply cuptai loss camyovers as long as the loss caryover is utilued frst and there are taxbble capital gains incuded in net income to agply to net captr. loss caryover forward. A laxpayet mav choose not to apply a capital loss carryover m the taxation year (even if there are taxable captal gains included in net income) it the taxpayer has litte to no net incocne and expects to have even taxable capital gains in a future year, Requirement S(c). Or, Smth asks you about the "ordering rules" in regatd to loss carryforwazds . Explain yeur tesiponse: Less camovers can be applied at the discretion of the texpayer as iong as thin Dr. Jacob Smich is 36 years old and is in the process of getling a divoroe As part of the divorce proceodings, Dr. Smith must sell a humber of his assots and holdings in order to divido the asteet of the marriege and poy a targe setilement to his former spouse, Jarette 5mit. Dr. Smen has provided you with the following tist of assets that he sold in the curtent year, inctuding the asset cest ind the procoeds of disposition: Click the ioon to view ine ist of assets.) Requirement 2. Calculate the net taxable capalal gain tor Dr. Jacob Smint for the current year. (Round your amwer to the nearnst cert.) The net laxable gain for the year is Requirement 3(a). What are the rules in regard to the carry.back and carry-forward niles for capital losses? Do these niles differ firm the nive ithat apply to ran-esgital lasses? exlent the taxpayer has included in net income in the taxation year carry.forwards in the current yer, ewen though the taopayer has fewiced a taxile capitat gain in the year. Taxpayers can choose whan to apply cogtal loss carryovers as tong as the loss carryover is uthted fist and enere are taxable capia gains incuided in nat incomie to apply to net captal loss caryover forward. A tappoyer may choose not in apply a captal loss caryover in the taxation year (even if there are taxable capital guina inchuded in net income) if ge lazpeyer has intle to no not income and expects to tave even taxable captal gains in a future year. Requirement 3(c), De. Smith atks you about the "ordening rules" in regard to loss carry torwarde. Explan your reapense. Loss caryprers can be applied at the discrebion of twe taxpoyar as long as the loss earryaver is utlized first. Requirement 1. Calculate the capitai gain (or loss) for each of the dispositions in the curtent tace6ion year Fitinthetablebelowchowingthecopitalgain(orloss)foreachit Reeuirement 2. Calculate the net tavable capital gain for Dr. Jacob smith for the current year. (Round your anower to the nearat cent.) The net taxible gain for the year it Heguirement 3(a). What are the ndes in regard to the carry tiack and cary.forward ndes for caphat boses? Do these nites difar tiom the nules that apoiy to non capital iosear? Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Asset Description Gold ring Proceeds of Disposition Original Price Paid market value of $250. Asset Description Proceeds of Disposition Original Price Paid Westjet shares $50 per share (December) Various Additional information: Dr. Smith purchased the Westjet shares over a period of time. Several years ago, he purchased 1,100 shares for $20 per share. In January of the previous taxation year, Dr. Smith purchased 800 shares for $17 per share. In April of the previous taxation year, Dr. Smith sold 1,300 shares at $30 per share to buy a gift for his wife. In June of the current taxation year, Dr. Smith purchased 1,050 shares for $29 per share. In October of the current taxation year, Dr. Smith purchased another 1,400 shares for 535 per share. In December of the current year, Dr. Smith sold all of his remaining Westjet shares. There are no brokerage fees on any of the Westjet share transactions. D. Joop 5m ah is 35 years old and is in the process of geting a dvorce. As port of the divorot procevelings, Dr Smith must seli a number of his assets and holdngs in onser to divide the asseis of fee mamage and pay a iarge seblement to his formor spouse, danece Smith. Dr. Sminh has provided you with the following list of assets that he sold in trie current year, inctuding the asset oost and Fe poseeds of dncostion List of assets Aasonar momaton: The home was the pricopal cesidence for Dc. Smith and fis former spouse for 10 yoars, ending in the cument cabin at the lake was designaked as De. Smittris princpal reaidinos for the two moet recent tavation yeans.) Therobore. thas home rannet be daimed as Dr. Smitis princibal fesidence for thosen years. destal practice) to pay for a settement to his fomer spouse Dr, Sinth naid legad foes relohed to this sale of shares of 516,680 Phase nole that those shares os not eroet the defrition of Quavied Smal blusisess Corporaton shares (osaC) apply to non-casitil bsses? the mamage and poy a large setcement to his former apousn, Janotle Smith Dr. Smith has provided you with the following list of assets that he sold in the cuirent year, indudry the assat cost and the proceeds of disposition? Requirements 1. Calcalate the caghal gain for loss) for each of the dispositions in the current taxation year 2. Calculate the net taxable capital gain for Dr, Jacob Smith for the current yoar. 3. De. King has a capital loss carry forward trom a priar year. He asks you the fostowing questions: (a) What are the rules in regand to the carry-back and camy-forward rues for capital iosses? Do these rules differ from the rules that opply to nan-eapital lesses? (b) Capital loss caryy-forward: Can a taxpayor choose whed to apply capital loss carry.forwarda? Give an example of when a taxpoyer may. choose not to decuct captal kass carry-forwards in the current year, even though the taxpayer has realized a tawable capial gain in the year. (c) Dr. Smith asks you about the "ordering rules" in regard to loss carry forwards. Explain your response. Requirement 1. Calculate the capital gain for loss) for each of the dispositons in the curnent taxotion year. Fil in the table beiow showing the capital gain (or loss) for each linm. (Round your anseen to the nearest cent. Enter losses with paranthases or a minus aign) Requirement 2. Calculate the ret taxable capital gain for Di, Jacob Smith for the current year. (Rlound your answer to the neareat cent.) The net taxable gain for the year in Requirement S(a). What aro the rules in regard to the carry-back and carry-forward rulos for capital losses? Do these niles difer trom the rues shat apply to non-capital losses? Capital loss carryovers can be carried back years and carried fonward Capital loss carryovers diter from non-captail loss cavryovers as they can only be appited to the extent the taspayer has included in net inoome in the taxstion year. The net taxable goin for the year a Fiequiremeat (a). What ane the nules in regard to the carrybock and carry.forward nules for captu bsses? Do thase ries difee from the rubs that apply to nen-capital iosses? Capial lises carryomers con be cairied back yoars and carred forward motert the taxpayne has inclyded in net noome in the taxabon yeat. Requirement 3(b) Cepitai loss carry-forward: Can a taxpayer choose when to apply capial loss carryforwards? Give an example of when a taupayor may choose not to deduct eapeal loss carryitonwards in the current year, even though the taxpayer has realizod a taxable capital gain in the year. Taxpayen can choose whien to apply cuptai loss camyovers as long as the loss caryover is utilued frst and there are taxbble capital gains incuded in net income to agply to net captr. loss caryover forward. A laxpayet mav choose not to apply a capital loss carryover m the taxation year (even if there are taxable captal gains included in net income) it the taxpayer has litte to no net incocne and expects to have even taxable capital gains in a future year, Requirement S(c). Or, Smth asks you about the "ordering rules" in regatd to loss carryforwazds . Explain yeur tesiponse: Less camovers can be applied at the discretion of the texpayer as iong as thin Dr. Jacob Smich is 36 years old and is in the process of getling a divoroe As part of the divorce proceodings, Dr. Smith must sell a humber of his assots and holdings in order to divido the asteet of the marriege and poy a targe setilement to his former spouse, Jarette 5mit. Dr. Smen has provided you with the following tist of assets that he sold in the curtent year, inctuding the asset cest ind the procoeds of disposition: Click the ioon to view ine ist of assets.) Requirement 2. Calculate the net taxable capalal gain tor Dr. Jacob Smint for the current year. (Round your amwer to the nearnst cert.) The net laxable gain for the year is Requirement 3(a). What are the rules in regard to the carry.back and carry-forward niles for capital losses? Do these niles differ firm the nive ithat apply to ran-esgital lasses? exlent the taxpayer has included in net income in the taxation year carry.forwards in the current yer, ewen though the taopayer has fewiced a taxile capitat gain in the year. Taxpayers can choose whan to apply cogtal loss carryovers as tong as the loss carryover is uthted fist and enere are taxable capia gains incuided in nat incomie to apply to net captal loss caryover forward. A tappoyer may choose not in apply a captal loss caryover in the taxation year (even if there are taxable capital guina inchuded in net income) if ge lazpeyer has intle to no not income and expects to tave even taxable captal gains in a future year. Requirement 3(c), De. Smith atks you about the "ordening rules" in regard to loss carry torwarde. Explan your reapense. Loss caryprers can be applied at the discrebion of twe taxpoyar as long as the loss earryaver is utlized first. Requirement 1. Calculate the capitai gain (or loss) for each of the dispositions in the curtent tace6ion year Fitinthetablebelowchowingthecopitalgain(orloss)foreachit Reeuirement 2. Calculate the net tavable capital gain for Dr. Jacob smith for the current year. (Round your anower to the nearat cent.) The net taxible gain for the year it Heguirement 3(a). What are the ndes in regard to the carry tiack and cary.forward ndes for caphat boses? Do these nites difar tiom the nules that apoiy to non capital iosear? Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Asset Description Gold ring Proceeds of Disposition Original Price Paid market value of $250. Asset Description Proceeds of Disposition Original Price Paid Westjet shares $50 per share (December) Various Additional information: Dr. Smith purchased the Westjet shares over a period of time. Several years ago, he purchased 1,100 shares for $20 per share. In January of the previous taxation year, Dr. Smith purchased 800 shares for $17 per share. In April of the previous taxation year, Dr. Smith sold 1,300 shares at $30 per share to buy a gift for his wife. In June of the current taxation year, Dr. Smith purchased 1,050 shares for $29 per share. In October of the current taxation year, Dr. Smith purchased another 1,400 shares for 535 per share. In December of the current year, Dr. Smith sold all of his remaining Westjet shares. There are no brokerage fees on any of the Westjet share transactions. D. Joop 5m ah is 35 years old and is in the process of geting a dvorce. As port of the divorot procevelings, Dr Smith must seli a number of his assets and holdngs in onser to divide the asseis of fee mamage and pay a iarge seblement to his formor spouse, danece Smith. Dr. Sminh has provided you with the following list of assets that he sold in trie current year, inctuding the asset oost and Fe poseeds of dncostion List of assets Aasonar momaton: The home was the pricopal cesidence for Dc. Smith and fis former spouse for 10 yoars, ending in the cument cabin at the lake was designaked as De. Smittris princpal reaidinos for the two moet recent tavation yeans.) Therobore. thas home rannet be daimed as Dr. Smitis princibal fesidence for thosen years. destal practice) to pay for a settement to his fomer spouse Dr, Sinth naid legad foes relohed to this sale of shares of 516,680 Phase nole that those shares os not eroet the defrition of Quavied Smal blusisess Corporaton shares (osaC) apply to non-casitil bsses