Question $1$

It is December $30,2023,$ and Christina Yang comes to you with the following information with

respect to her $2023$ taxation year:

$1)$ She earns employment income of $$150,000.$

$2)$ She owns a few items. She wants to clean out her house and would like to sell most of

her possessions. The properties she plans to sell in the current year are:

$$ A vintage automobile:

o Cost $$42,000.$

o Spent $$145,000$ on the restoration process.

o FMV of the automobile is $$320,000.$

$$ A coin collection:

o Cost: $$17,600.$

o FMV of $$23,000.$

$$ Sailboat:

o Cost: $$162,000.$

o FMV: $$123,000.$

$$ A rare copy of a classic novel:

o Cost: $$4,000.$

o FMV: $$8,500.$

$$ Antique desk:

o Cost: $$600.$

o FMV: $$2,200.$

$$ Oil painting:

o Cost: $$275,000.$

o FMV: $$350,000.$

o The art gallery charges a sales commission of $20\%.$

She sold her rental property on January $1.$ The relevant tax values of the rental property

are given below:

Land Cost $$60,000$ Proceeds $$100,000$ Commision Paid $$3,600$ UCC N$/$A

Building Cost $$80,000$ Proceeds $$150,000$ Commision Paid $$5,400$ UCC $$65,000$

The building was the only asset in Class $1(4\%).$

$4)$ On the sale of the land and building, Lana had received $$150,000$ and issued a

mortgage of $$100,000$ at a rate of $6\%.$ $$20,000$ will be repaid on January $1$st for the next

$5$ years.

$5)$ She sold some shares she had in a small business corporation as defined by the ITA.

Below are the details:

$$ She paid $$30,000$ for $1,000$ shares.

$$ September $30,2023,$ there was a $2$:$1$ stock split.

$$ April $1,2023$ She sold $1,100$ shares for proceeds of $$9,000.$

$$ She has never used her Capital gains deduction.

Required $$

$($a$)$ Calculate Christina$$s taxable income for $2023.$ Assume she wants to minimize the

taxable income and will use all means available to her.

$($b$)$ With respect to the sale of property, indicate if any amounts may be available to carry

over to other years.