Bob has the following income and deductions:

Medical expenses  $( 3,300)

Net rental income $(16,000)

Business loss $(32,000)

Allowable capital losses from the sale of land  $( 7,000)

Dividend income for a public company  $ 1,000

Employment income  $ 60,000

Capital gain on sale of shares  $ 10,000

Subdivision e deductions (RRSP deduction) $(14,000)

Lottery winnings  $ 1,000

Required:

Calculate Bob’s net income for tax purposes using Section 3 format. Indicate the amount and type of any loss carryovers that would be available at the end of the current year. Indicate the time period the loss (es) could be carried over and what type of income they could be applied against.

Answer rating: 100% (QA)

To calculate Bobs net income for tax purposes using Section 3 format and determine any loss carryove... View the full answer