Anna Osinski acquired a townhouse unit in 2020 for $132,000 (land $10,000, building $122,000). She bought the unit in order to rent it. By the end of 2022, the undepreciated capital cost of the building was $113,900. In August 2023, Anna decided to live in the unit herself. At that time, similar townhouses were selling for $149,600 (land $13,200, building $136,400). Prior to August, her 2023 net rental income before capital cost allowance was $1,100. In September 2023, Anna purchased, for rental purposes, a residential condominium unit for $159,500 (land $16,500, building $143,000). Between September and the end of the taxation year, the condo earned net rentals of $1,000 before capital cost allowance. Required: Determine the Change to Anna's 2023 net income for tax purposes as a result of the above activity. Rents condo Rents townhouse Recapture Less CCA Taxable Capital gains: Change to net income Answer is not complete. 0

Anna Osinski acquired a townhouse unit in 2020 for $132,000 (land $10,000, building $122,000). She bought the unit in order to rent it. By the end of 2022, the undepreciated capital cost of the building was $113,900. In August 2023, Anna decided to live in the unit herself. At that time, similar townhouses were selling for $149,600 (land $13,200, building $136,400). Prior to August, her 2023 net rental income before capital cost allowance was $1,100. In September 2023, Anna purchased, for rental purposes, a residential condominium unit for $159,500 (land $16,500, building $143,000). Between September and the end of the taxation year, the condo earned net rentals of $1,000 before capital cost allowance. Required: Determine the Change to Anna's 2023 net income for tax purposes as a result of the above activity. Rents condo Rents townhouse Recapture Less CCA Taxable Capital gains: Change to net income Answer is not complete. 0

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations

Section: Chapter Questions

Problem 29P

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