05 Alicia acquired a townhouse unit in 2017 for $145,200 (land $10,000, building $135,200). She bought...

 

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05 Alicia acquired a townhouse unit in 2017 for $145,200 (land $10,000, building $135,200). She bought the unit in order to rent it. By the end of 2019. the undepreciated capital cost of the building was $125,300. In August 2020, Alicia decided to live in the unit herself. At that time, similar townhouses were selling for $164,600 (land $14,500, building $150,100). Prior to August, her 2020 net rental income before capital cost allowance was $1,200. In September 2020, Alicia purchased, for rental purposes, a residential condominium unit for $175,500 (land $18,200, building $157,300). Between September and the end of the taxation year, the condo earned net rentals of $1,100 before capital cost allowance. Required: Determine the Change to Alicia's 2020 net income for tax purposes as a result of the above activity. Rental Income Net Income for Tax Purposes 05 Alicia acquired a townhouse unit in 2017 for $145,200 (land $10,000, building $135,200). She bought the unit in order to rent it. By the end of 2019. the undepreciated capital cost of the building was $125,300. In August 2020, Alicia decided to live in the unit herself. At that time, similar townhouses were selling for $164,600 (land $14,500, building $150,100). Prior to August, her 2020 net rental income before capital cost allowance was $1,200. In September 2020, Alicia purchased, for rental purposes, a residential condominium unit for $175,500 (land $18,200, building $157,300). Between September and the end of the taxation year, the condo earned net rentals of $1,100 before capital cost allowance. Required: Determine the Change to Alicia's 2020 net income for tax purposes as a result of the above activity. Rental Income Net Income for Tax Purposes

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To determine the change to Alicias 2020 net income for tax purposes we need to consider the following events and calculate their impact 1 Alicias Town... View the full answer