Income Tax Question 22 Mike owns 55% of the shares in a Look Through Company (LTC)...

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Income Tax Question 22 Mike owns 55% of the shares in a Look Through Company (LTC) and 70% of the shares in a limited liability company. Mike is also a partner in a general partnership. There are 5 partners including Mike, and the partnership's sole business activity is in relation to forestry. In 2020 The LTC made profits of $240,000 The limited liability company made profits of $150,000 The forestry partnership made a loss of $120,000 Mike received salary and wages from the limited liability company of $50,000 Mike received interest from his savings account of $2,000 Mike also had a garage sale before Christmas and made $4,000 Mike withdrew $120,000 from his current account with the limited liability company Required: Calculate Mike's taxable income for the 2020 year. (6 marks) Income Tax Question 22 Mike owns 55% of the shares in a Look Through Company (LTC) and 70% of the shares in a limited liability company. Mike is also a partner in a general partnership. There are 5 partners including Mike, and the partnership's sole business activity is in relation to forestry. In 2020 The LTC made profits of $240,000 The limited liability company made profits of $150,000 The forestry partnership made a loss of $120,000 Mike received salary and wages from the limited liability company of $50,000 Mike received interest from his savings account of $2,000 Mike also had a garage sale before Christmas and made $4,000 Mike withdrew $120,000 from his current account with the limited liability company Required: Calculate Mike's taxable income for the 2020 year. (6 marks)

Answer rating: 100% (QA)

Mikes Taxable Income for 2020 Income Look Through Company LTC Profit share 55 240000 132000 Limited ... View the full answer