Owen Winehouse is 51 years old and has been married to Arlene Winehouse for over 25 years. Having made his fortune through a widely successful initial public offering, he devotes most of his time to mentoring young entrepreneurs and participating in volunteer activities. Information relevant to Owen’s 2016 tax return follows. 

1. During 2016 , Owen received eligible dividends from Canadian public companies in the amount of $32,400. 

2. For several years, Owen has owned 100 percent of the shares of an eligible small business corporation. The adjusted cost base of these shares is $520,000. 

On July 1, 2016 , these shares are sold for $600,000. As sume none of the gain is eligible for the lifetime capital gains deduction. During 2016 , the new small business corporation paid non - eligible dividends of $22,000. 

3. The residence occupied by Owen and Arlene was purchased in 200 2 for $320,000. As their spa ce needs have grown considerably, they have decided to replace this property. It is sold during February, 201 6 for $375,000. Selling costs, including commissions, total $20,000. Their new residence, purchased at the beginning of 201 6 , cost $458,000. 

4. In January of this year, Owen purchased a cottage to operate as a rental property. The purchase price was $235,000, of which $75,000 can be allocated to the land. Owen plan s to never claim this property as a principal residence and will take CCA on it inste ad . In addition, Owen spent $42,000 furnishing the cottage. All of the furnishings are Class 8 assets. On March 1, 201 6 , it is rented for $3,000 per month for the remainder of the year. Expenses, other than CCA, total $22,000 for March 1 to December 31, 2016 . 

5. For several years, Owen has been interested in French common stock Debit Agricole (DA). The stock trades in Euros ( €) and Owen’s first purchase of 1,000 shares was made on October 1, 201 3 for €14.00 per share. He acquired the Euros at a rate of €1 .00 = $1. 57 . 

Subsequent transactions were as follows: Date Qty Purchased (Sold) Price per Share Exchange Rate (Cdn$) November 4, 201 4 300 €14.50 $1. 55 January 6, 201 5 (400) 15.00 1. 54 June 24, 201 6 600 15.50 1. 51 On December 2, 201 6 , he sells all of his shares for €13.00 per share. At this time, € = 1.35. The Euros are immediately converted into Canadian Dollars. 

6. Owen sell s his vintage power boat. He had purchased this boat several years ago in damaged condition for $10,000. He subsequently spent $ 24,627 restoring it to mint condition. As a result, he was able to sell it for $50,000 during 2016 . 

7. During 2016 he sold his st amp collection for $12,000. Th e total cost of the colle ct ed stamps was $8,000 . He also sold an oil painting for $700. This paining, which he had always hated, had been a gift from Arlene’s mother. At the time of the gift, the painting had a fair market value of $4,000. 

Required: 

Using the formatted Excel spreadsheet provided, determine Owen’s minimum Net Income for Tax Purpo ses for 2016 .

Owen Winehouse			Notes:
			Please show all calculations and explanations.
			For items with more complex calculations (2,4,5,6,7), I have provided space on a separate worksheet.
			Feel free to take as much space as you need.
			If no adjustment is necessary for a particular item, please indicate this and explain why.

Item	Explanation	Interest	Dividend	net rental	taxable capital gains
1
2
3
4
5
6
7
	Minimum net income for tax purposes
Total

Calculation:

Owen Winehouse - Additional Calculations

2. Shares in small business corporation:

4. Rental Cottage

CCA Deduction:

1

2

3

4

5

6

7

8

9

10

Class

UCC @ beginning of the year

Cost of acquisitions during the year

Proceeds of dispositions during the year (amount not to exceed the capital cost)

Net UCC (Col 2+3-4)

Adj for Acquisitions ½*(col 3-4) (half year rule)

Base amt for CCA (col5-6)

CCA rate %

CCA for the year (col 7x8) (or lower amt as elected)

UCC @ end of year (col 5-9)

Maximum CCA

-

5. Shares in Debit Agricole

Calculating adjusted cost base:

Hint: use the chart under "Identical Properties" as your guide.

exchange rate

Value in

Purchase/Sale Date

# shares

price (€)

Cdn$

Cdn$/share

6. Sale of Vintage Power boat:

7. Sale of Oil Painting and Stamp Collection:

Hint: don't forget about the $1,000 floor rule for Personal Use Property!