Taxation and Capital Gains Study Guide

School: McMaster University - Course: COMMERCE 4SB3 - Subject: Accounting

costproceedscapitalgain painting25001500-1000 canoe700500-200 Nil coin1400500-900 bible80040003200 antique car1500010000-5000 Nil antique chair3001200900 antique table15002000500 Cap gain ofLPP1300 LPP - CL1200 Taxable amoutn100 CAP GAIN of PPP1400 Note: you cannot have a loss on a ppp Taxable amount1400

Problem 6 Taxable capital gains: Date of purchaseCostSelling priceCG Toronto home201517000025000080000 Farm in Quebec201710000014800048000 Condominum in Florida202015000018600036000 The year we are in rn is 2022. Lets manipulate the principal residence exemption to lessen the overall cost. ((1+ yrs designated principal residence) / number of years owned) * gain = how much our capital tax is red Toronto HomeFarm in QuebecFlordida condom P of D250000148000186000 ACB170000100000150000 CG800004800036000 Years of ownership863 Gain per year10000800012000 Allocation of years512 PRE calculation600001600036000 Capital gain20000320000 Overall taxable capital gain52000