Lonny Landman disposed of the following capital investment during 2021. Sale of a luxury rental condominium in
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Question:
Lonny Landman disposed of the following capital investment during 2021.
Sale of a luxury rental condominium in December 2021 for proceeds of $1,075,000. Lonny had paid $708,000 in January 2021 to acquire this property but had been unable to rent it during the year. In order to facilitate the sale, Lonny took back a mortgage in the amount of $525,000 for 5 years @ 8%. The mortgage calls for annual capital and interest payments beginning in 2022. Lonny paid $59,000 in commission costs.
REQUIRED:
Calculate Lonny's taxable capital gain for the 2021 taxation year
Related Book For
Canadian Income Taxation Planning And Decision Making
ISBN: 9781259094330
17th Edition 2014-2015 Version
Authors: Joan Kitunen, William Buckwold
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