Jason Bourne sold a capital property on October 31, 2017 for $270,000. He received a cash down payment of $100,000. The balance of $170,000 is payable on October 31, 2021. The adjusted cost base of the property was $150,000 and the selling costs were $11,000.

Required – Calculate the minimum taxable capital gain (rounded to the nearest dollar) Jason must report in 2020. (Canada)

2. On September 1, 2020, Marcus purchased a $10,000 bond that has the following characteristics:

Coupon rate = 6%;

Semi-annual payments on June 30 and December 31

Due date of December 31, 2025

Required –

Calculate the Interest Income relating to this bond that Marcus will have to report on his 2020 tax return (Canada)

Answer rating: 100% (QA)

Solution Ans 1 Calculation of minimum taxable capital gain Selling price of Property ... View the full answer