Required: Calculate the capital gains reserve which may be claimed by John for 20x4 to 20x9

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter5: Business Deductions
Section: Chapter Questions
Problem 38P
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CAPITAL GAINS RESERVE EXAMPLE
In 20x4 John sold a building having an ACB of 40,000 for 250,000. Disposal
fees on this transaction were $10,000. The purchaser has agreed to pay for
the building according to the following payment schedule
20x4-
20x5-
20x6-
20x7-
20x8-
20x9-
50
50,000
50,000
110,000
25,000
15,000
$250,000
Required:
Calculate the capital gains reserve which may be claimed by John for 20x4
to 20x9
Transcribed Image Text:CAPITAL GAINS RESERVE EXAMPLE In 20x4 John sold a building having an ACB of 40,000 for 250,000. Disposal fees on this transaction were $10,000. The purchaser has agreed to pay for the building according to the following payment schedule 20x4- 20x5- 20x6- 20x7- 20x8- 20x9- 50 50,000 50,000 110,000 25,000 15,000 $250,000 Required: Calculate the capital gains reserve which may be claimed by John for 20x4 to 20x9
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