John starts a new retail business operation on January 1, 2019. In addition he is an...
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John starts a new retail business operation on January 1, 2019. In addition he is an active investor in the stock market realizing gains and losses and earning investment income Relevant information for John's 2019 to 2020 taxation years is presented below. Year Ending December 31, 2019 • Net business income of $45,000. • Interest income $12.000 • Taxable Capital Gains 3,000 Year Ending December 31, 2020 • Net business loss of $37,200 • Interest income $2,700 • Taxable Capital Gains 1,600 • Allowable Capital Losses $7,800 In each year John needs $25,000 in Taxable Income to absorb his personal tax credits. When he has a choice, John prefers to deduct maximum loss carry overs and carry back any losses to the earliest possible year. John has no income prior to 2018. Required: Apply the loss carryavers, if any, according to John's preferences and indicate the amounts and types of loss carry overs that would be available at the end 2020. Answer directly in the textbox below (no file attachment). Show all work and clearly label or highlight your answers for full credit. John starts a new retail business operation on January 1, 2019. In addition he is an active investor in the stock market realizing gains and losses and earning investment income. Relevant information tor John's 2019 to 2020 taxation years is presented below. Year Ending December 31, 2019 • Net business income of $45,000. • Interest income $12,000 • Taxable Capital Gains 3,000 Year Ending December 31, 2020 • Net business loss of $37.200 • Interest income $2,700 • Taxable Capital Gains 1,600 • Allowable Capital Losses $7,800 In each year John needs $25,000 in Taxable Income to absorb his personal tax credits. When he has a choice, John prefers to deduct maximum loss carry overs and carry back any losses to the earliest possible year, John has no income prior to 2018. Required: Apply the loss carryovers, if any, according to John's preferences and indicate the amounts and types of loss carry overs that would be available at the end 2020. Answer directly in the textbox below (no file attachment). Show all work and clearly label or highlight your answers for full credit. John starts a new retail business operation on January 1, 2019. In addition he is an active investor in the stock market realizing gains and losses and earning investment income Relevant information for John's 2019 to 2020 taxation years is presented below. Year Ending December 31, 2019 • Net business income of $45,000. • Interest income $12.000 • Taxable Capital Gains 3,000 Year Ending December 31, 2020 • Net business loss of $37,200 • Interest income $2,700 • Taxable Capital Gains 1,600 • Allowable Capital Losses $7,800 In each year John needs $25,000 in Taxable Income to absorb his personal tax credits. When he has a choice, John prefers to deduct maximum loss carry overs and carry back any losses to the earliest possible year. John has no income prior to 2018. Required: Apply the loss carryavers, if any, according to John's preferences and indicate the amounts and types of loss carry overs that would be available at the end 2020. Answer directly in the textbox below (no file attachment). Show all work and clearly label or highlight your answers for full credit. John starts a new retail business operation on January 1, 2019. In addition he is an active investor in the stock market realizing gains and losses and earning investment income. Relevant information tor John's 2019 to 2020 taxation years is presented below. Year Ending December 31, 2019 • Net business income of $45,000. • Interest income $12,000 • Taxable Capital Gains 3,000 Year Ending December 31, 2020 • Net business loss of $37.200 • Interest income $2,700 • Taxable Capital Gains 1,600 • Allowable Capital Losses $7,800 In each year John needs $25,000 in Taxable Income to absorb his personal tax credits. When he has a choice, John prefers to deduct maximum loss carry overs and carry back any losses to the earliest possible year, John has no income prior to 2018. Required: Apply the loss carryovers, if any, according to John's preferences and indicate the amounts and types of loss carry overs that would be available at the end 2020. Answer directly in the textbox below (no file attachment). Show all work and clearly label or highlight your answers for full credit.
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Related Book For
Intermediate Accounting IFRS
ISBN: 978-1119372936
3rd edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Posted Date:
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