Mr. Mark Vargo has been a resident of Canada all of his life. He was recently...

 

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Mr. Mark Vargo has been a resident of Canada all of his life. He was recently offered a lucrative job with a reputable firm in Washington, DC. After careful consideration he has decided to make the move and sever his Canadian residency. At the time he ceased to be a resident of Canada he owned the following properties: Antique sports car Personal automobile Shares in Bank of Nova Scotia (a public company) Shares in Vargo Ltd. (a private company) Coin collection Cottage (not his principal residence) ACB $ 32,000 32,000 12,000 23,000 8,000 135,000 FMV $ 46,000 18,000 16,000 17,000 6,000 262,000 Required: Determine the taxable capital gain or allowable capital loss that Mr. Vargo will be required to include in his final Canadian income tax return for the current year as a result of becoming a non-resident of Canada. Ignore any special elective options that may be available to him on leaving Canada. Mr. Mark Vargo has been a resident of Canada all of his life. He was recently offered a lucrative job with a reputable firm in Washington, DC. After careful consideration he has decided to make the move and sever his Canadian residency. At the time he ceased to be a resident of Canada he owned the following properties: Antique sports car Personal automobile Shares in Bank of Nova Scotia (a public company) Shares in Vargo Ltd. (a private company) Coin collection Cottage (not his principal residence) ACB $ 32,000 32,000 12,000 23,000 8,000 135,000 FMV $ 46,000 18,000 16,000 17,000 6,000 262,000 Required: Determine the taxable capital gain or allowable capital loss that Mr. Vargo will be required to include in his final Canadian income tax return for the current year as a result of becoming a non-resident of Canada. Ignore any special elective options that may be available to him on leaving Canada.

Answer rating: 100% (QA)

SOLUTION When an individual ceases to be a resident of Canada they are deemed to have disposed of al... View the full answer