A few years ago, Paul borrowed $150,000 to invest in Amazon equity funds that focused on long-term capital appreciation. In the three years since he made this investment, he has received cumulative taxable income from the fund of $6,000 and has deducted cumulative interest expenses of $30,000 on his tax returns.
a) What is Paul's CNIL balance? ( Explain in detail with calculations)
b If Paul were to sell his Amazon shares for $200,000, What would be the amount or the taxable
capital gain that qualifies for the taxable capital gains deduction ? ( Explain in detail with calculations)

 Bonnie sold a property this year for $300,000. His ACB for the property was $140,000. He took cash of $50,000 as a down payment and will receive the remaining $250,000 in five annual installments of $50,000, commencing next year.

a) What is Bonnie's capital gain? (Explain in detail with calculations)

b) For this taxation year, what is the maximum capital gains reserve that Bonnie can claim?( Explain in detail with calculations)

 
C) Bonnie must report a capital gain for the current year of how much? (Explain in detail with calculation)

Answer rating: 100% (QA)

a To determine Pauls cumulative net investment loss CNIL balance we need to calculate the adjusted cost base ACB of his investment first The ACB is th... View the full answer