The following information has been provided by your client, Mr. Stanley Norman: Employment income Property income (loss) Capital gains (OG) Capital losses (CL) (excluding BIL) Business investment loss (BIL) 2020 $75,000 $80,000 2021 2022 $90,000 (4,000) 3,000 (6,000) 144,000 160,000 18,000 22,500 36,000 54,000 80,000 Additional Information (1) The above capital gains do not include capital gains from qualified farm property or qualified small business corporation shares. (2) Mr. Norman had a $21,000 net capital loss which was realized in 2017. (3) Mr. Norman did not have a capital gain prior to 2020. Dealing with each item line-by-line across the years, rather than one year at a time: (A) determine Mr. Norman's income from the sources indicated for 2020 to 2022 according to the ordering rules in section 3, and (B) determine Mr. Norman's taxable income from the sources indicated from 2020 to 2022 after amending the returns.

The following information has been provided by your client, Mr. Stanley Norman: Employment income Property income (loss) Capital gains (OG) Capital losses (CL) (excluding BIL) Business investment loss (BIL) 2020 $75,000 $80,000 2021 2022 $90,000 (4,000) 3,000 (6,000) 144,000 160,000 18,000 22,500 36,000 54,000 80,000 Additional Information (1) The above capital gains do not include capital gains from qualified farm property or qualified small business corporation shares. (2) Mr. Norman had a $21,000 net capital loss which was realized in 2017. (3) Mr. Norman did not have a capital gain prior to 2020. Dealing with each item line-by-line across the years, rather than one year at a time: (A) determine Mr. Norman's income from the sources indicated for 2020 to 2022 according to the ordering rules in section 3, and (B) determine Mr. Norman's taxable income from the sources indicated from 2020 to 2022 after amending the returns.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 58P

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