Question 1 The following timeline depicts the homes Nicolas Laberge owned over the course of his...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 1 The following timeline depicts the homes Nicolas Laberge owned over the course of his life. Required: Show how the principal residence exemption would have been applied (or not) to each house in the year of its disposition to minimize the tax consequences. Indicate the amount of capital gain/loss to be included on Nicolas' tax return in each disposition year. Assume that each property meets the requirements to qualify as a principal residence. 1975: Purchased first home, 56 Hyde St, for $95,000. 1995: Sold 56 Hyde St. for $170,000. Purchased second home, 789 Groves Cres., for $200,000 2000: Sold 789 Groves Cres., for $192,000 Purchased third home, 11 Songbird Ave. for $215,000 2002: Purchased cottage at White Lake for $200,000 2004: Sold 11 Songbird Ave. for $250,000 Purchased 100 Fieldfire Lane for $306,000 At the time of sale of Songbird, Nicolas predicted that the cottage would be the more favourable property to which to allocate the principal residence exemption. As such, he only identified Songbird as the principal residence in years before the cottage was purchased. 2021: Sold 100 Fieldfire Land for $750,000 Sold cottage at White Lake for $1,055,000 Moved into retirement home Question 1 The following timeline depicts the homes Nicolas Laberge owned over the course of his life. Required: Show how the principal residence exemption would have been applied (or not) to each house in the year of its disposition to minimize the tax consequences. Indicate the amount of capital gain/loss to be included on Nicolas' tax return in each disposition year. Assume that each property meets the requirements to qualify as a principal residence. 1975: Purchased first home, 56 Hyde St, for $95,000. 1995: Sold 56 Hyde St. for $170,000. Purchased second home, 789 Groves Cres., for $200,000 2000: Sold 789 Groves Cres., for $192,000 Purchased third home, 11 Songbird Ave. for $215,000 2002: Purchased cottage at White Lake for $200,000 2004: Sold 11 Songbird Ave. for $250,000 Purchased 100 Fieldfire Lane for $306,000 At the time of sale of Songbird, Nicolas predicted that the cottage would be the more favourable property to which to allocate the principal residence exemption. As such, he only identified Songbird as the principal residence in years before the cottage was purchased. 2021: Sold 100 Fieldfire Land for $750,000 Sold cottage at White Lake for $1,055,000 Moved into retirement home
Expert Answer:
Answer rating: 100% (QA)
The principal residence exemption would have been applied to the first home 56 Hyde St in the year o... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
What are the 4 requirements to qualify as a tax-free reorganization?
-
Question 1 The following trial balance relates to Moby as at 30 September 2019: Revenue Cost of sales Distribution costs GHS'000 GHS'000 227,800 Administrative expenses (note (ii) Bank interest Lease...
-
Question 1 The following transactions relate to February 2022 for Build Small Co., a small construction company operating a job costing system. (b) 1) Raw materials of RM275,000 were purchased with...
-
Golf ball manufacturer Trevino is generally regarded as the industry leader. It commands a 40 percent market share in its targeted channels of distribution and reported net profits of $31.5 million...
-
You are a CPA working for a local firm and have been assigned the 2011 tax return of Bobby Crosser. In going over the data that Bobby gave the firm, you are surprised to see that he has reported no...
-
Discuss any differences in the evaluation of a replacement decision versus the evaluation of an expansion decision.
-
List the main stakeholder groups in a company. Consider whether and why each stakeholder group might be interested in corporate eco-efficiency indicators. What level of information is each group most...
-
EZPAK Manufacturing produces filament packaging tape. In 2010, EZPAK Manufacturing produced and sold 15 million rolls of tape. The company has recently expanded its capacity, so it can now produce up...
-
During the past year a small company sold 50,000 batting gloves for $3.00 each. Their total fixed cost was $36,000 and total variable cost was $90,000. What is their breakeven point in units? A) 126,...
-
Pizza Corporation acquired 80 percent ownership of Slice Products Company on January 1, 20X1, for $160,000. On that date, the fair value of the noncontrolling interest was $40,000, and Slice reported...
-
Give an example of each type of solution from your own experience. A solution composed of a gas solute in a liquid solvent. A solution composed of a solid solute in a liquid solvent. A solution...
-
You work as an HR Manager for a global company with 4000 employees worldwide with majority of its workforce working remotely. Owing to the on-going Performance Management (PM) issues and the...
-
Now that we've awakened the research mindset in Unit 1, in Unit 2, we'll kick off the first phase of 'real' college research with a little reflective research - by looking first into the self and...
-
How do advanced materials and nanotechnology contribute to the development of next-generation renewable energy technologies, such as high-efficiency solar cells, advanced wind turbine blades, and...
-
Company A has to decide whether to manufacture internally or to buy or contract from outsiders. Company A is able to contract with another company to supply them ready make at $5 each. The details of...
-
Identify the slope and y-intercept from an equation of a line and relate a graph to the equation Use the graph to find the slope and y-intercept of the given line. Compare the values to the equation...
-
A company has assembly line with 12 elemental tasks, with durations and precedorse as given below. eleme 1 34 nt durati 0.32 0.5 0.8 0.2 on preced ed 2 5 6 7 1,2 2 8 0.4 0.15 0.28 0.7 0.45 0.35 9 3...
-
What is the difference between direct materials and indirect materials?
-
Assume that a company has two processing departments-mixing followed by Firing. Explain what costs might be added to the Firing Departments Work in Process account during a period.
-
Mason Paper Company (MPC) manufactures commodity grade papers for use in computer printers and photocopiers. MPC has reported net operating losses for the last two years due to intense price pressure...
-
Mercury, Inc., produces cell phones at its plant in Texas. In recent years, the companys market share has been eroded by stiff competition from overseas. Price and product quality are the two key...
-
The load resistor in the NMOS inverter in Figure \(16.3(\mathrm{a})\) is \(R_{D}=40 \mathrm{k} \Omega\). The circuit is biased at \(V_{D D}=3.3 \mathrm{~V}\). (a) Design the transistor...
-
The inverter circuit in Figure 16.3 (a) is biased at \(V_{D D}=3.3 \mathrm{~V}\). Assume the transistor conduction parameter is \(K_{n}=50 \mu \mathrm{A} / \mathrm{V}^{2}\). (a) Let \(R_{D}=100...
-
(a) Redesign the resistive load inverter in Figure 16.3 (a) so that the maximum power dissipation is \(0.25 \mathrm{~mW}\) with \(V_{D D}=3.3 \mathrm{~V}\) and \(v_{O}=0.15 \mathrm{~V}\) when the...
Study smarter with the SolutionInn App