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Fadel has the following sources of income and deductions: Net employment income 34,000, Property income 6,000,...

Fadel has the following sources of income and deductions: Net employment income 34,000, Property income 6,000, Business loss 54,000, Taxable capital gain 4,000, Allowable capital loss 7,000. What is Fadel’s Net Income or Loss for Tax Purposes? (Show your working) *

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Answer #1

Computation of net income of Fadel

Particulars Amount Amount
Net Employment Income 34000
Property Income 6000
Capital Gain 4000
Less: Capital Losses set off to the extent of capital gain 7000 set off upto 4000 4000
Remaining Capital loss to be set off against other heads of income allowable maximum upto 3000 for the year 3000 (3000)
Income before set off of business loss 37000
Business Losses allowable maximum upto 250000 for the year to the extent of total income available (54000)
Net Income (Loss) (17000)
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