Required: Calculate Mr Bodvin's minimum net property income to be included on his 2021 tax return. Also, show any other tax items that will affect Mr Bodvin with regards to his 2021 income tax return.
Required: Calculate Mr Bodvin's minimum net property income to be included on his 2021 tax return. Also, show any other tax items that will affect Mr Bodvin with regards to his 2021 income tax return.
Chapter11: Investor Losses
Section: Chapter Questions
Problem 64P
Related questions
Question
Sir please urgently
Transcribed Image Text:Property Income
Alex Bodvin acquires a residential rental property in June, 2021 at a total cost of $423,000. Of this
total, $132,000 can be allocated to the value of the land. He immediately spends $42,000 to make
major improvements to the property (added to cost of property) Rents for the year total $32,000, while
rental expenses other than CCA total $27,500. This is the only rental property owned by Mr. Bodvin.
During the year Mr. Bodvin receives interest income from his investments of $1,500, Mr Bodvin
acquired these investment 2 years ago when he took out a loan at his local bank for $30,000 to
purchase $20,000 worth of the investments and $10,000 to put a pool in his backyard. During the year
he paid $1,200 interest on this loan.
In November, he received $5,600 in dividends from investments made in Canadian controlled private
corporations, and $6,000 from investments made in Canadian Public Corporations.
Mr. Bodvin believes in taking the maximum deductions that he can take to reduce income.
Required
Calculate Mr Bodvin's minimum net property income to be included on his 2021 tax return.
Also, show any other tax items that will affect Mr Bodvin with regards to his 2021 income tax return.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT