Canadian tax principles 2023/2024 edition volume i and volume ii 1st edition byrd solutions manual

lOMoAR cPSD|13140485 Downloaded by SungEun Kim () lOMoAR cPSD|13140485 Canadian tax principles 20 23/2024 edition volume i and volume ii 1st edition byrd solutions manual lOMoAR cPSD|13140485 Downloaded by SungEun Kim () Canadian Tax Principles 2023/2024 Edition Volume I and Volume II 1st Edition Byrd Solutions Manual Full Download: http://alibabadownload.com/product/canadian -tax-principles -2016 -2017 -edition -volume -i-and-volume -ii-1st-editio Canadian Tax Principles 2 023/2024 Solutions Manual – Chapters 11 to 21 Solutions Manual Table of Contents – Chapters 11 to 21 For a listing of the subjects covered and difficulty of each Assignment Problem, please refer to the .PDF version of the Solutions Manual that is ava ilable at the Instructor’s Resource Centre on the online catalogue listing for this book, at catalogu e.pearsoned.ca The table of contents is hyperlinked to the beginning of each Problem Solution. To go to a Solution, hold down the Control key and click on the solution listing.Control + Home will bring you back to this table of contents from anywhere in the document. CHAPTER ELEVEN SOLUTIONS Solution to Assignment Problem Eleven - 1 2013 Analysis The required information can be calculated as follows: ITA 3(a) Business Income $19,800 Taxable Dividends [(138%)($1,870)] ITA 3(b) 2,581 $22,381 Taxable Capital Gains [(1/2)($1,320)] $ 660 Allowable Capital Losses [(1/2)($4,620)] ( 2,310) Nil ITA 3(c) ITA 3(d) Farm Loss (See Note) $22,381 ( 6,750) Net Income For Tax Purposes And Taxable Income $15,631 Note Dale’s farm losses are restricted as follows: Total Farm Loss Deductible Amount: First $2,500 ($2,500) $11,000 One-Half Of $8,500 ($11,000 - $2,500) ( 4,250) ( 6,750) Restricted Farm Loss Carry Forward $ 4,250 lOMoAR cPSD|13140485 Downloaded by SungEun Kim () As noted in the problem, none of the losses can be carried back before 2013. This would leave the following carry forward balances at the end of 2013:  Restricted Farm Loss Carry Forward $4,250  Net Capital Loss Carry Forward ($2,310 - $660) $1,650 2014 Analysis The required information can be calculated as follows: ITA 3(a) Since there are taxable capital gains this year, and the problem states that Dale would like to deduct the maximum amount of his net capital loss carry forwards, the net capital loss carry forward of $1,100 is added to the balance of the non-capital loss. Farm Income $ 2,200 Taxable Dividends [(138%)($2,351)] ITA 3(b) Taxable Capital Gains [(1/2)($2,200)] 3,244 $ 1,100 $ 5,444 Allowable Capital Losses Nil 1,100 ITA 3(c) ITA 3(d) Business Loss $ 6,544 ( 15,400) Net Income For Tax Purposes 2013 Net Capital Loss Carry Forward Nil ($ 1,100) Taxable Income (Loss) Nil lOMoAR cPSD|13140485 Downloaded by SungEun Kim () The non-capital loss carry over is calculated as follows: Business Loss $15,400 2013 Net Capital Loss Deducted 1,100 ITA 3(c) Income ( 6,544) Non-Capital Loss Carry Over For 2014 $ 9,956 The entire non-capital loss carry over could be carried back to 2013, but since Dale requires $15,400 in Taxable Income to fully utilize his tax credits, the maximum carry back to 2013 is $231, calculated as follows: 2013 Taxable Income (As Reported) $15,631 Non-Capital Loss Carry Back From 2014 ( 231) 2013 Amended Taxable Income (Minimum) $15,400 This carry back leaves Dale with his required $15,400 in Taxable Income. There would be the following carry forward balances at the end of 2014:  Restricted Farm Loss Carry Forward (Unchanged) $4,250  Net Capital Loss Carry Forward ($1,650 - $1,100)] $ 550  Non-Capital Loss Carry Forward ($9,956 - $231) $9,725 2015 Analysis The required information can be calculated as follows: ITA 3(a) There would be the following carry forward balance at the end of 2015:  Restricted Farm Loss Carry Forward ($4,250 - $3,465) $ 785 2016 Analysis The required information can be calculated as follows: ITA 3(a) Taxable Dividends [(138%)($5,140)] $ 7,093 ITA 3(b) Taxable Capital Gains [(1/2)($4,950)] $ 2,475 Allowable Capital Losses [(1/2)($15,950)] ( 7,975) Nil ITA 3(c) ITA 3(d) Business Loss ($20,900) $ 7,093 Farm Loss ( 2,200) ( 23,100) Net Income For Tax Purposes And Taxable Income Nil Business Income $33,000 Farm Income 3,465 Taxable Dividends [(138%)($3,160)] ITA 3(b) Taxable Capital Gains [(1/2)($4,400)] 4,361 $2,200 $40,826 Allowable Capital Losses Nil 2,200 Net Income For Tax Purposes $43,026 Restricted Farm Loss Carry Forward (Equal To Farm Income) ( 3,465) Net Capital Loss Carry Forward (Less Than $2,200) ( 550) Non-Capital Loss Carry Forward (All) ( 9,725) Taxable Income $29,286