Question 2 (10 Marks) (20 minutes) Sam has been a resident of Ottawa, Canada all of his life. He was recently offered a lucrative job with an investment firm in Chicago, IL. After careful consideration he has decided to make the move and sever his Canadian residency. Before moving, Sam disposed of the following personal properties: Description 1967 Ford Cobra 2022 Lexus 2000 shares in Ban of Nova Scotia (public Co) 1000 Shares in Bell Media share Shares in a private Company (Vargo Ltd) $17,000 Coin Collection Cost $ 95,000 $ 68,000 $25.00/SHARE $125.00/SAHRE $ 23,000 $10,000 Home in Ottawa Capital loss carried forward FMV $225,000 $ 55,000 $ 32.00/SHARE $ 88.00/ $ 24,000 $425,000 $ 36,000 $625,000 $ 36,000 Required: Determine the taxable capital gain or allowable capital loss that Sam will be required to include in his final Canadian income tax return for the current year as a result of these dispositions. (Show your calculations)
Question 2 (10 Marks) (20 minutes) Sam has been a resident of Ottawa, Canada all of his life. He was recently offered a lucrative job with an investment firm in Chicago, IL. After careful consideration he has decided to make the move and sever his Canadian residency. Before moving, Sam disposed of the following personal properties: Description 1967 Ford Cobra 2022 Lexus 2000 shares in Ban of Nova Scotia (public Co) 1000 Shares in Bell Media share Shares in a private Company (Vargo Ltd) $17,000 Coin Collection Cost $ 95,000 $ 68,000 $25.00/SHARE $125.00/SAHRE $ 23,000 $10,000 Home in Ottawa Capital loss carried forward FMV $225,000 $ 55,000 $ 32.00/SHARE $ 88.00/ $ 24,000 $425,000 $ 36,000 $625,000 $ 36,000 Required: Determine the taxable capital gain or allowable capital loss that Sam will be required to include in his final Canadian income tax return for the current year as a result of these dispositions. (Show your calculations)
Chapter18: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 41P
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Transcribed Image Text:Question 2 (10 Marks) (20 minutes)
Sam has been a resident of Ottawa, Canada all of his life. He was recently offered a
lucrative job with an investment firm in Chicago, IL. After careful consideration he has
decided to make the move and sever his Canadian residency.
Before moving, Sam disposed of the following personal properties:
Description
1967 Ford Cobra
2022 Lexus
2000 shares in Ban of Nova Scotia (public Co)
1000 Shares in Bell Media
share
Shares in a private Company (Vargo Ltd)
$17,000
Coin Collection
Cost
$ 95,000
$ 68,000
$25.00/SHARE
$125.00/SAHRE
$ 23,000
$10,000
Home in Ottawa
Capital loss carried forward
FMV
$225,000
$ 55,000
$ 32.00/SHARE
$ 88.00/
$ 24,000
$425,000
$ 36,000
$625,000
$ 36,000
Required: Determine the taxable capital gain or allowable capital loss that Sam will
be required to include in his final Canadian income tax return for the current year as a
result of these dispositions. (Show your calculations)
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