Can you Please explain me this Problem? Thanks! Prior to 2020, Mr. Henry Close has had two capital gains and one capital loss. In 2005, he had a capital gain of $18,000 and in 2007; he had a capital gain of $54,000. In both cases, he used his lifetime capital gains deduction to eliminate the taxable amount of these gains. He has an allowable capital loss from 2008 of $30,000 (a capital loss of $60,000), which he deducts in 2020. He has never experienced a Business Investment Loss. During 2020, he has a $748,000 capital gain on the sale of shares in a qualified small business corporation. Mr. Close has a CNIL balance on December 31, 2020 of $23,000. Required: Determine Mr Close's maximum lifetime capital gains deduction for 2020.

Can you Please explain me this Problem? Thanks! Prior to 2020, Mr. Henry Close has had two capital gains and one capital loss. In 2005, he had a capital gain of $18,000 and in 2007; he had a capital gain of $54,000. In both cases, he used his lifetime capital gains deduction to eliminate the taxable amount of these gains. He has an allowable capital loss from 2008 of $30,000 (a capital loss of $60,000), which he deducts in 2020. He has never experienced a Business Investment Loss. During 2020, he has a $748,000 capital gain on the sale of shares in a qualified small business corporation. Mr. Close has a CNIL balance on December 31, 2020 of $23,000. Required: Determine Mr Close's maximum lifetime capital gains deduction for 2020.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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