we deurvided to you to the service w AB 5 C 1 bustion : Taxable Capital Gain (12 marks 2 Parta Tanya Goodard is the owner of two residences. She purchased the Langley home in 2004, and in 2016 after finding new employment the purchased the Halifax home. In each of the subsequent years, the spent some time at each residence. She sold both residences and moved in with her mother in 2021. The selling prices and Costs of the homes are shown below. She wants to minimize the taxes she pays on the capital gains 705,100 4 Home Langley Holtas 5 Selling price, net of real estate fees 574,700 6 Acquisition cost 525,900 469,600 7 Capital gain 130,200 105,100 8 Number of years owned No morks are awarded for the table. 9 Capital cain per year 10 11 Required: 1. Explain how Tanya should choose which home should be designated her principal residence for the taxation years owned to minimize her capital gains that arose as the result of selling the two properties. (2 marks) 12 Cover Sheet - please read 01 02 03 04 05 Formula Sheet + Calon Made Autumn Warhook ve www i hewa yeye na www.www. A1 C D z Caller Tayotarat capital gainder the designnon that you have recommende marks 15 16 17 Principal residence 1 Empt portion of capital Capital in 1 ts of years de 19 Number of years and -20 Landey 21 Principal residence evention 22 Empt portion of capital in Enter a whole numbe DO NOT SHOW 23 24 Catalan 130,200 25 Ls empt portion of capital gain 20 Revised capitala 27 ble Capitalan 28 Max 29 30 31 Principal residence emption 32 Exempt portion of capital gain Enter a whole umbes DO NOT SHOW THE 105,100 34 35 Capital 36 Less exempt portion of capitalan 37 Revised Capital Gain eshte Cover sheet - please read Q1 Q2 Q3 Q1 Os Formula Sheet Mode Wine www sans con has the thing to youtube The theoret A13 C E H 2 35 tapital gain 105, 100 36 es exempt portion of capital gain 37 Red Capital Gain 38 Faxatie Capital Gain 29 40 41 Part b. This is unrelated to parta. above Den inherited a piece of land in the foothills of Alberta from his late grandmother. At the time of her death the land had a fair market value of $300.000. During the current year Benis approached by a fand developer who offers a $1,000,000 for the land. The land developer would pay a 25% downpayment and Ben would accepta note payable for the remaining $750,000 43 * 1. Explain to then the tax consequences of selling the land (1 marks) B ** MBO General 5-EP Othewwerdens te wys moeten we A13 B 0 E 2. Ber would like to deducts the maximum capital gains reserve in the current year and subsequent years, Explain 47 how the capital in reserve would reduce Ben's capital in 2 marks) 40 49 50 51 52 53 54 55 56 we deurvided to you to the service w AB 5 C 1 bustion : Taxable Capital Gain (12 marks 2 Parta Tanya Goodard is the owner of two residences. She purchased the Langley home in 2004, and in 2016 after finding new employment the purchased the Halifax home. In each of the subsequent years, the spent some time at each residence. She sold both residences and moved in with her mother in 2021. The selling prices and Costs of the homes are shown below. She wants to minimize the taxes she pays on the capital gains 705,100 4 Home Langley Holtas 5 Selling price, net of real estate fees 574,700 6 Acquisition cost 525,900 469,600 7 Capital gain 130,200 105,100 8 Number of years owned No morks are awarded for the table. 9 Capital cain per year 10 11 Required: 1. Explain how Tanya should choose which home should be designated her principal residence for the taxation years owned to minimize her capital gains that arose as the result of selling the two properties. (2 marks) 12 Cover Sheet - please read 01 02 03 04 05 Formula Sheet + Calon Made Autumn Warhook ve www i hewa yeye na www.www. A1 C D z Caller Tayotarat capital gainder the designnon that you have recommende marks 15 16 17 Principal residence 1 Empt portion of capital Capital in 1 ts of years de 19 Number of years and -20 Landey 21 Principal residence evention 22 Empt portion of capital in Enter a whole numbe DO NOT SHOW 23 24 Catalan 130,200 25 Ls empt portion of capital gain 20 Revised capitala 27 ble Capitalan 28 Max 29 30 31 Principal residence emption 32 Exempt portion of capital gain Enter a whole umbes DO NOT SHOW THE 105,100 34 35 Capital 36 Less exempt portion of capitalan 37 Revised Capital Gain eshte Cover sheet - please read Q1 Q2 Q3 Q1 Os Formula Sheet Mode Wine www sans con has the thing to youtube The theoret A13 C E H 2 35 tapital gain 105, 100 36 es exempt portion of capital gain 37 Red Capital Gain 38 Faxatie Capital Gain 29 40 41 Part b. This is unrelated to parta. above Den inherited a piece of land in the foothills of Alberta from his late grandmother. At the time of her death the land had a fair market value of $300.000. During the current year Benis approached by a fand developer who offers a $1,000,000 for the land. The land developer would pay a 25% downpayment and Ben would accepta note payable for the remaining $750,000 43 * 1. Explain to then the tax consequences of selling the land (1 marks) B ** MBO General 5-EP Othewwerdens te wys moeten we A13 B 0 E 2. Ber would like to deducts the maximum capital gains reserve in the current year and subsequent years, Explain 47 how the capital in reserve would reduce Ben's capital in 2 marks) 40 49 50 51 52 53 54 55 56
