Mr. Eles owns a number of personal assets, all of which were acquired while he was a resident of Canada. As he plans to spend the next 6 years travelling around Europe, he will be selling off most of his possessions for cash. The assets he will be selling are as follow:

1. He owns a vintage automobile which has been restored to like-new condition. He purchased the vehicle for $50,000 and has spent $150,000 on his restoration project. He estimates the current fair value of the vehicle is $290,000.

2. He also owns an antique desk that he acquired for $700 at an antique show. He believes that it could be sold for $2,500 and that no selling costs would be incurred.

3. Mr. Eles inherited an oil painting from his Aunt Jean. His Aunt acquired the painting for $34,000. Mr. Eles believes the painting could be sold at auction for $39,000 with auction fees of $1,400.

Please determine the amount that would have to be included in Mr. Eles’ Net Income for Tax Purposes if all of these assets were sold for their estimated value.

Answer rating: 100% (QA)

Solution MrEles Net Income for Tax Purposes if all of these assets were sold for their e... View the full answer