Mr. Tax Saver has carried out several transactions during 2020. He provides you with the following information: 1. Mr. Tax Saver sold 260 of his shares in Demo Ltd. at $36/share. Selling costs on the disposition were $175. In April of 2015 he had purchased 200 of these shares at $24/share and in December of that same year purchased an additional 160 shares at $33/share. 2. Mr. Tax Saver was the owner of a house he acquired in 1989 for $120,000. Tax Saver and his family resided in the house until 2020 when it was sold for $285,000. Tax paid $1,500 to the real estate broker who negotiated the sale. Tax and his spouse have never bought any other buildings. 3. During the year Tax sold his stamp collection for $850, which he had purchased for $3,450 in 1998. Selling costs on the disposition were $100. 4. Mr. Tax Saver's mother died in 2020. His employer decided to pay $16,000 as a death benefit in recognition of his 30 years of service. Since his mother was a widow, $16,000 was paid to Mr. Tax Saver since he is her only child. 5. Mr. Tax Saver won a prize of $750 from his employer for dreaming up a new sales campaign complete with a slogan and new logo. 6. Finally, late in the year Tax Saver decided he'd had enough of the "rat race commute" and suddenly retired. Due to his long and mostly excellent service over the years, his employer awarded him with a $5,000 retiring allowance. Tax saver plans to purchase a new hot tub for the back yard with this allowance. 

REQUIRED: 

SHOW ALL CALCULATIONS Provide Mr. Tax Saver with the tax consequences of the six transactions.

Answer rating: 100% (QA)

Tax Consequences for Mr Tax Saver 2020 1 Share Sale Cost per share 200 24 160 33 9680 Total cost 968... View the full answer