Your client (Irene) has provided you with the following information below. 2018 2019 2020 Losses are...

 

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Your client (Irene) has provided you with the following information below. 2018 2019 2020 Losses are represented in brackets Income from employment Income from property Income from self-employment Capital gain (loss) from selling shares in 123 Ltd., a public company Capital gain (loss) from selling PUP Capital gain (loss) from selling LPP Capital gain (loss) from selling shares in 456 Inc., a small business corporation $70,000 ($35,000) $50,000 $2,500 $85,000 $20,000 $55,000 $3,500 $78,000 ($15,000) ($55,000) ($1,200) $1,000 $3,000 ($22,000) ($1,000) $5,000 $27,000 $2,500 $7,500 Irene has the following loss information from previous years: • LPP carryover loss from 2016 of s1,000 • Net capital loss from 2017 of $10,000 • Non-capital loss from 2012 of $25,000 • No QSBC deduction available. She used all her $883k lifetime limit last year when she sold one of her businesses. Required: You need to calculate the Division B income, apply any Division C deductions, determine the taxable income, and calculate any unused losses which can be used in other taxation years. Your client (Irene) has provided you with the following information below. 2018 2019 2020 Losses are represented in brackets Income from employment Income from property Income from self-employment Capital gain (loss) from selling shares in 123 Ltd., a public company Capital gain (loss) from selling PUP Capital gain (loss) from selling LPP Capital gain (loss) from selling shares in 456 Inc., a small business corporation $70,000 ($35,000) $50,000 $2,500 $85,000 $20,000 $55,000 $3,500 $78,000 ($15,000) ($55,000) ($1,200) $1,000 $3,000 ($22,000) ($1,000) $5,000 $27,000 $2,500 $7,500 Irene has the following loss information from previous years: • LPP carryover loss from 2016 of s1,000 • Net capital loss from 2017 of $10,000 • Non-capital loss from 2012 of $25,000 • No QSBC deduction available. She used all her $883k lifetime limit last year when she sold one of her businesses. Required: You need to calculate the Division B income, apply any Division C deductions, determine the taxable income, and calculate any unused losses which can be used in other taxation years.

Answer rating: 100% (QA)

Determination of taxable income 2018 amount in 2019amount 2020amount i... View the full answer