At the beginning of 2020, Joanne Chance had the following loss carry forwards available: Restricted Farm Losses
Question:
At the beginning of 2020, Joanne Chance had the following loss carry forwards available:
Restricted Farm Losses $ 7,200
Non-Capital Losses 41,000
Net Capital Losses [(1/2)($50,000)] 25,000
During 2020, she had the following amounts of income:
Taxable Capital Gains $ 10,500
Business Income 14,200
Employment Income 61,000
Farm Income 2,950
Determine Joanne’s Net Income For Tax Purposes, as well as her minimum Taxable Income for 2020. Indicate the amount and type of any losses available for carry forward at the end of the year. Ignore any deductible CPP.
Joanne needs $30,000 of taxable income for 2020 to use up her non-refundable tax credits. Where possible, Joanne would like to use up her restricted farm losses first, then her net capital losses and finally her non capital losses.
Intermediate Accounting Reporting and Analysis
ISBN: 978-1337788281
3rd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach