Bryan Mills has a very particular set of skills required across many parts of the world. Bryan owned a condo in Toronto, a ski chalet in Whistler, BC, and a villa in Malta, Europe until June 15, 2017 when he sold all three properties and moved into a seniors' residence. He provided the following information with respect to the properties: Property Year Acquired Cost Selling Price (net of commission and other selling costs) Toronto 2011 $400,000 $480,000 Malta 2012 $200,000 $265,000 Whistler 2014 $300,000 $356,000 For the years that Bryan owned each property, he ordinarily inhabited it at some time in the year. He tended to spend the months of January to April in Malta and split the remainder of the year between his condos in Toronto and Whistler. Required: 9 Marks (a) Determine the minimum taxable capital gain to be reported by Bryan on the sale of the three properties. (b) Explain how would the answer change if Bryan had moved out of the Toronto condo in 2013 when it was worth $410,000 and earned rental income from the Toronto condo from that date until he sold it in 2017?
Bryan Mills has a very particular set of skills required across many parts of the world. Bryan owned a condo in Toronto, a ski chalet in Whistler, BC, and a villa in Malta, Europe until June 15, 2017 when he sold all three properties and moved into a seniors' residence. He provided the following information with respect to the properties: Property Year Acquired Cost Selling Price (net of commission and other selling costs) Toronto 2011 $400,000 $480,000 Malta 2012 $200,000 $265,000 Whistler 2014 $300,000 $356,000 For the years that Bryan owned each property, he ordinarily inhabited it at some time in the year. He tended to spend the months of January to April in Malta and split the remainder of the year between his condos in Toronto and Whistler. Required: 9 Marks (a) Determine the minimum taxable capital gain to be reported by Bryan on the sale of the three properties. (b) Explain how would the answer change if Bryan had moved out of the Toronto condo in 2013 when it was worth $410,000 and earned rental income from the Toronto condo from that date until he sold it in 2017?
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
Section: Chapter Questions
Problem 32P
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Transcribed Image Text:Bryan Mills has a very particular set of skills required across many parts of the world. Bryan owned
a condo in Toronto, a ski chalet in Whistler, BC, and a villa in Malta, Europe until June 15, 2017
when he sold all three properties and moved into a seniors' residence. He provided the following
information with respect to the properties:
Property
Year
Acquired Cost
Selling Price
(net of commission
and other selling costs)
Toronto 2011 $400,000 $480,000
Malta 2012 $200,000 $265,000
Whistler 2014 $300,000 $356,000
For the years that Bryan owned each property, he ordinarily inhabited it at some time in the year.
He tended to spend the months of January to April in Malta and split the remainder of the year
between his condos in Toronto and Whistler.
Required: 9 Marks
(a) Determine the minimum taxable capital gain to be reported by Bryan on the sale of the three
properties.
(b) Explain how would the answer change if Bryan had moved out of the Toronto condo in 2013
when it was worth $410,000 and earned rental income from the Toronto condo from that date
until he sold it in 2017?
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