Dr. Jarod Cloutier is 36 yoars old and is in the process of gutting a divorce. As part of the divorce proceedings, Dr. Cloutier must seli a number of his assets and holdings in order to divide the assets of the marriage and pay a large settlement to his former spouse, Janetie Cloutier. Dr. Coutier has provided you wht the following list of assets that he sold in the current year, including the asset cost and the proceeds of disposition. Click the icon to view the list of assets.) Reguirements Requirement 1. Calculate the capital gain (or los5) for each of the dispositions in the curtent taxalion year. Fill in the table below showing the capital gain (or loss) for oach item. (Round your ariswerf to the nearest cent Enter lossbs with parenthecas or a minus sign) Asset Description Capital gain (or loss) Sailboat Speedboat Principal Residence Vacant Land Big Pharma Shares Dr. Cloutier PC Shares Gold Ring Westiet Shares Additional information: The home was the principal residence for Dr. Cloutier and his former spouse for 10 years, ending in the current taxation year. Last year, Dr. Cloutier sold his cabin at the lake, which he claimed as his principal residence for two taxation years (the cabin at the lake was designated as Dr. Cloutier's principal residence for the two most recent taxation years, Therefore, this home cannot be claimed as Dr. Cloutier's principal residence for those years. Additional information: Dr. Cloutier bought this vacant land as an investment property. Since its purchase, the land has been vacant and Dr. Cloutier has not earned any income on the land, but he paid $16,000 in property taxes and $510 on mortgage interest on the land during this time. Additional information: Dr. Cloutier had to liquidate some shares of his privately owned professional corporation (which operates his dental practice) to pay for a settlement to his former spouse. Dr. Cloutier paid legal fees related to this sale of shares of \$16,590. Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Asset Descripton Proceeds of Disposition Original Price Paid Westjet shares $50 per share (December) Additional information: Dr. Cloutier purchased the Westjet shares over a period of time. Several years ago, he purchased 1,200 shares for \$20 per share. In January of the previous taxation year, Dr. Cloutier purchased 800 shares for $19 per share. In April of the previous taxation year, Dr. Cloutier sold 1,100 shares at $30 per share to buy a gift for his wife. In June of the current taxation year, Dr. Cloutier purchased 1,050 shares for $29 per share. In October of the current taxation year, Dr. Cloutier purchased another 1,450 shares for $35 per share, In December of the current year, Dr. Cloutier soid ali of his remaining Westiet shares. There are no brokerage fees on any of the Westiet share transactions. 1. Calculate the capital gain (or loss) for each of the dispositions in the current taxation year. 2. Calculate the net taxable capital gain for Dr. James Smith for the current year. 3. Dr. King has a capital loss carry-forward from a prior year. He asks you the following questions: (a) What are the rules in regard to the carry-back and carry-forward rules for capital losses? Do these rules differ from the rules that apply to non-capital losses? (b) Capital loss carry-forward: Can a taxpayer choose when to apply capital loss carfy-forwards? Give an example of when a taxpayer may choose not to deduct capital loss carry-forwards in the current year, even though the taxpayer has realized a taxable capital gain in the year. (c) Dr. Smith asks you about the "ordering rules" in regard to loss carry-forwards. Explain your response. Dr. Jarod Cloutier is 36 yoars old and is in the process of gutting a divorce. As part of the divorce proceedings, Dr. Cloutier must seli a number of his assets and holdings in order to divide the assets of the marriage and pay a large settlement to his former spouse, Janetie Cloutier. Dr. Coutier has provided you wht the following list of assets that he sold in the current year, including the asset cost and the proceeds of disposition. Click the icon to view the list of assets.) Reguirements Requirement 1. Calculate the capital gain (or los5) for each of the dispositions in the curtent taxalion year. Fill in the table below showing the capital gain (or loss) for oach item. (Round your ariswerf to the nearest cent Enter lossbs with parenthecas or a minus sign) Asset Description Capital gain (or loss) Sailboat Speedboat Principal Residence Vacant Land Big Pharma Shares Dr. Cloutier PC Shares Gold Ring Westiet Shares Additional information: The home was the principal residence for Dr. Cloutier and his former spouse for 10 years, ending in the current taxation year. Last year, Dr. Cloutier sold his cabin at the lake, which he claimed as his principal residence for two taxation years (the cabin at the lake was designated as Dr. Cloutier's principal residence for the two most recent taxation years, Therefore, this home cannot be claimed as Dr. Cloutier's principal residence for those years. Additional information: Dr. Cloutier bought this vacant land as an investment property. Since its purchase, the land has been vacant and Dr. Cloutier has not earned any income on the land, but he paid $16,000 in property taxes and $510 on mortgage interest on the land during this time. Additional information: Dr. Cloutier had to liquidate some shares of his privately owned professional corporation (which operates his dental practice) to pay for a settlement to his former spouse. Dr. Cloutier paid legal fees related to this sale of shares of \$16,590. Please note that these shares do not meet the definition of Qualified Small Business Corporation Shares (QSBC). Asset Descripton Proceeds of Disposition Original Price Paid Westjet shares $50 per share (December) Additional information: Dr. Cloutier purchased the Westjet shares over a period of time. Several years ago, he purchased 1,200 shares for \$20 per share. In January of the previous taxation year, Dr. Cloutier purchased 800 shares for $19 per share. In April of the previous taxation year, Dr. Cloutier sold 1,100 shares at $30 per share to buy a gift for his wife. In June of the current taxation year, Dr. Cloutier purchased 1,050 shares for $29 per share. In October of the current taxation year, Dr. Cloutier purchased another 1,450 shares for $35 per share, In December of the current year, Dr. Cloutier soid ali of his remaining Westiet shares. There are no brokerage fees on any of the Westiet share transactions. 1. Calculate the capital gain (or loss) for each of the dispositions in the current taxation year. 2. Calculate the net taxable capital gain for Dr. James Smith for the current year. 3. Dr. King has a capital loss carry-forward from a prior year. He asks you the following questions: (a) What are the rules in regard to the carry-back and carry-forward rules for capital losses? Do these rules differ from the rules that apply to non-capital losses? (b) Capital loss carry-forward: Can a taxpayer choose when to apply capital loss carfy-forwards? Give an example of when a taxpayer may choose not to deduct capital loss carry-forwards in the current year, even though the taxpayer has realized a taxable capital gain in the year. (c) Dr. Smith asks you about the "ordering rules" in regard to loss carry-forwards. Explain your response
