Timothy is a Canadian resident, but he wants to escape the high taxes of Canada and decides
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- Timothy is a Canadian resident, but he wants to escape the high taxes of Canada and decides to move to Bermuda. Timothy has come to you for advice prior to leaving Canada for good. No elections were filed related to his departure from Canada. He will depart on January 1, 2021 with the following assets:
Adjusted Fair Market
Cost Base Value
A Picasso Painting $ 33,000 $ 38,000
A rare book that was destroyed in a fire $10,000 $0
Shares in Suncor (A Canadian Public Company) 108,000 47,000
Shares in TD Bank (A Canadian Public Company) 18,000 72,000
Cottage Residence 100,000 200,000
Personal Residence 180,000 520,000
A Porsche sports car (Recreational Use Only) 172,000 92,000
What amount of the taxable capital gain or allowable capital loss will Timothy report on his Canadian income tax return for 2021 as a result of his departure from Canada?
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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