Bob sold the following assets in the current year: A piece of furniture purchased for $900...

  

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Bob sold the following assets in the current year: A piece of furniture purchased for $900 and sold for proceeds of $750 A car (for his personal use) originally purchased for $4,000 and sold for proceeds of $1,500 A gold chain with a cost of $800 was sold for proceeds of $1,500 Required: What is Bob's tax impact of the sale of assets? Solution: Calculation of Capital Gain: Proceeds of disposition Adjusted cost base POD (applying $1,000 rule) ACB (applying $1,000 rule) Capital Gain (Loss) Inclusion rate Allowable capital loss Furniture (PUP) $ es Car (PUP) $ Loss is denied Gold Chain (LPP) $ Gain is subject to tax $ Bob sold the following assets in the current year: A piece of furniture purchased for $900 and sold for proceeds of $750 A car (for his personal use) originally purchased for $4,000 and sold for proceeds of $1,500 A gold chain with a cost of $800 was sold for proceeds of $1,500 Required: What is Bob's tax impact of the sale of assets? Solution: Calculation of Capital Gain: Proceeds of disposition Adjusted cost base POD (applying $1,000 rule) ACB (applying $1,000 rule) Capital Gain (Loss) Inclusion rate Allowable capital loss Furniture (PUP) $ es Car (PUP) $ Loss is denied Gold Chain (LPP) $ Gain is subject to tax $

Answer rating: 100% (QA)

Answer and Explanation 1 Furniture sold for 750 which was purchased for 900 so there is a capital ... View the full answer