Question: Problem 1: Total Points Available 31 Required: Mr. Armstrong has provided you with the below informaiton. Please determine Mr. Armstrong's net income for tax purposes
Problem 1: Total Points Available 31
Required:Mr. Armstrong has provided you with the below informaiton. Please determine Mr. Armstrong's net income for tax purposes (Division B income) in 2020 as a result of the information. Show all of your calculations.
1.He sold his existing home and his cottage during the year and moved into a condominium. His home was purchased in 2004 at a cost of $85,000. He sold it in September 2020 for proceeds of $250,000. He paid real estate commission of $12,000 on this sale. His cottage was purchased in 2005 at a cost of $120,000. He sold it in November 2020 for proceeds of $320,000. He paid real estate commission of $10,000 on this sale. He did not own any other residences during the relevant years and, thus, has not previously designated any of the relevant years for purposes of the principal residence exemption.
2.He sold the following personal items during 2020:
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