During 2017, Timothy Trader began engaging in frequent trading in Canadian securities, with the intention of making
Question:
During 2017, Timothy Trader began engaging in frequent trading in Canadian securities, with the intention of making profits on sales of shares. Below is a summary of purchases and sales of shares that he made in 2018:
Number Cost Sale price
Company of shares per share per share
Alogoma Steel 1200 $ 8.47 $ 7.48
Bell Canada 1500 46.88 55.75
Dominion Bridge 800 21.25 26.85
MacLean Hunter 1900 9.22 11.37
Rio Algom Mines 2300 15.25 13.50
Slater Steel 1250 10.00 8.20
Required:
- Explain the tax implications of the above transactions as they relate to Timothy's 2018 personal income tax return. (Include the taxable amount of the effect!)
- What advice would you give Timothy to help improve his tax situation?
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg