1. Taxpayer was a gardener who leased a lawn-mower and then decided to replace it with a...
Question:
1. Taxpayer was a gardener who leased a lawn-mower and then decided to replace it with a better one a year later. The previous lawn-mower was sold for a greater value than what was owing on its lease.
Taxpayer carried on a business leasing vehicles. Decided to begin selling the old vehicles.
A taxpayer runs a hairdressing business. They own the land and the building. In 2020, the taxpayer decides to sell dispose of the land and building.
Taxpayer carried on a business selling and leasing watches. Taxpayer claimed depreciation deductions on equipment leased. The sale price of leased items was greater than the original cost and only included the recouped depreciation as income.
2. Harry's Hairdresser is a barber shop owned by Harry who carries on his business as a sole proprietor. The books of account for the 2020-21 income year reveal that Harry has taxable income of $500,000.
Assuming Harry has no other income outside of the business and is not eligible for any tax offsets, Harry's tax payable is?
Group of answer choices
$205,667
$195,667
$225,000
$51,667
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold