Question

The following are separate situations:

i) Alex disposed of several coins in Dec of the current year and realized a capital gain in the amount of $12,000. Alex has net capital losses with respect to listed personal properties carried forward from previous taxation years as follows:

1993: $8,000

2014: $5,000
Indicate Alex's taxable net gain from the disposition of the listed personal property.

ii) Christine S. has provided you with the following information with respect to her stock transactions in the current taxation year(assume stocks sold in December of the year).

Number of shares Shares Cost V-Day Value Proceeds Selling costs
1,500 Shares of Dean Ltd. $5,000 $4,500 $10,000 $1,000
700 Shares of Grant Ltd. $25,000 $32,500 $30,000 $3,000
10,000 Shares of Sam Ltd. $15,000 -- $48,000 $3,500
Christine informs you that during the year in November, she also sold jewelry for proceeds of $2,000. The cost was $800. Christine further informs you that her former accountant told her that she has a net capital loss carryforward with respect to listed personal property of $600. This loss was realized in the 1998 taxation year. Calculate Christine's net taxable capital gain for the above transactions.

iii) Mr. Sinclair exercised a stock option with respect to 1000 shares of a Canadian Controlled Private Corporation (CCPC) on June 15, 2019. Mr. Sinclair sold all 1000 common shares of the company on November 1st of the same year. The following information in respect to the transaction is as follows:

- exercise price $1.10pershare.

- fair market value of shares on exercise date $2.00 per share.

- proceeds of disposition $3.00per share
Calculate MrSinclair's net income for tax purposes based on the information provided.

iv) A building was sold in the current year. The facts in respect of the disposition are as follows:

Cost in1965 $20,000

V-day value $45,000

Proceeds of disposition in the year $120,000

a) Calculate the capital gain with respect to the disposition of the building in the year.

b) Assume instead that the cost of the building is $125,000 and not $20,000. Calculate the tax consequences.

v) An individual sells 200 shares of B Ltd on Dec.15, 2019 for $15,000 (cost 25,000); on Jan. 5, 2020, the individual's spouse acquires 200 B Ltd shares for $70/share. An additional 100 shares were purchased by the spouse for $60/share in June of 2020. The spouse sells 160 shares on Dec.10, 2020 for $110/share. Calculate the tax consequences for each individual for each taxation year.

Answer 1

Answer
i	Net capital gain	Amount in $
	Capital gain on disposal of coins	12000
	Less:Capital loss carried forward $8000+$5000	13000
	Net capital gain	-1000
ii	Capital gain	Dean	Grant	Syam	Jewelry
	Sale price	10000	30000	48000	2000
Less	Cost	5000	25000	15000	800
Less	Selling Cost	1000	3000	3500
	Capital gain	4000	2000	29500	1200
	Total capital gain=4000+2000+29500+1200	36700
	Less : capital loss carried forward	600
	Net taxable capital gain	36100
iii	Sale from disposal	3000
Less:	Cost of exercising option	1100
	Net taxable income	1900
iv a	Sale proceeds of building	120000
Less:	v day value	45000
	capital gain	75000
b	Sale proceeds of building	120000
Less:	v day value	125000
	Capital Loss	-5000