acob Mills has provided you with the following information: 2019 2020 2021 Taxable capital gains on sale of qualified small business corporation shares . . . . . . . . . . . . . . . . . . . . . $75,000 - $300,000 Business investment loss (before ssec. 39(9) adjustment) - - 160,000 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . .. - $1,200 2,400 Grossed-up taxable dividends . . . . . . . . . . . . . . . . . .. - 240 - Net rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . - (1300) (320) Carrying charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 3,075 -
Jacob Mills has provided you with the following information:
|
2019 |
2020 |
2021 |
|
|
Taxable |
|||
|
corporation shares . . . . . . . . . . . . . . . . . . . . . |
$75,000 |
- |
$300,000 |
|
Business investment loss (before ssec. 39(9) adjustment) |
- |
- |
160,000 |
|
Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . .. |
- |
$1,200 |
2,400 |
|
Grossed-up taxable dividends . . . . . . . . . . . . . . . . . .. |
- |
240 |
- |
|
Net rental income (loss) . . . . . . . . . . . . . . . . . . . . . . . |
- |
(1300) |
(320) |
|
Carrying charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
- |
3,075 |
- |
The 2019 taxable capital gain was fully offset by a capital gains deduction in that year.
—REQUIRED
Determine Jacob’s capital gains deduction for 2021 supported by all the necessary calculations.
Assume that there were no other capital transactions before 2019.
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