P realized the following gains and losses in the current yea

P realized the following gains and losses in the current year:

• Gain on sale of public company shares $20,000

• Gain on sale of listed personal property 2,000

• Gain on sale of personal-use property 1,000

• Loss on sale of small business corporation shares (5,000)

• Loss on sale of listed personal property (3,000)

• Loss on sale of personal-use property (5,000)

What is the amount of net taxable capital gains to be reported for the current year [ITA 3(b)]?

Solution

Calculation of Net taxable capital gain Gain on sale of shares $20,000 Gain on listed personal property $2,000 Gain on sale of proeprty used for personal purpose $1,000 Loss on sale of shares ($5,000) Loss on sale of listed personal property ($3,000) Net taxable capital gain $15,000 Note loss on sale of personal prroperty not allowed to be setoff