50.1K

Verified Solution

Link Copied!

Anita Lopez operates a full$-$time law practice in eastern Ontario. In her spare time, she maintains a small rural acreage for the purpose

of growing and selling Christmas trees. In addition, she derives income from various investments and is an art collector.

The following chart shows her financial results for $2023.$

Net income from law practice

Loss on tree farm operation $($not chief source of income$)$

Gross rents received on rental property

Operating expenses on rental property before capital cost allowance

Gain on sale of shares of public corporations

Loss on sale of summer cottage

Gain on sale of oil painting

Gain on sale of shares of a qualified small business corporation

Lump$-$sum payment to ex$-$spouse as part of divorce settlement

Loss on sale of shares of a public corporation

other deductions

$$130,000$

$(9,500)$

$37,000$

$(50,000)$

$107,000$

$(10,000)$

$14,000$

$26,000$

$(53,000)$

$(19,000)$

$(4,500)$

At the end of $2022,$ the following tax accounts existed.

Listed personal property loss carry$-$forward from $2022,(7,000)$

Undepreciated capital cost allowance on rental property $$(213,000)$

Net capital losses $$(7,000)$

Anita has not previously claimed a capital gains deduction. Assume her cumulative net investment loss $($CNIL$)$ balance at the end of

$2023$ is Nil.

Required:

What is Anita's taxable income for $2023?$

Paragraph $3($a$)$ Income

$$,133,000$

Paragraph $3($c$)$ Other deductions

Paragraph $3($d$)$ Losses

Net income for tax purposes

Deduct:

$2020$ LPP Loss carry forward

Rental loss

Taxable income

Answer & Explanation Solved by verified expert

See Answer