Ms. Jean Claus has an unincorporated business with a December 31 year end. During 2019, its first year of operation, the business has net business income of $45,000. The business also had an allowable capital loss during the year of $5,250 [(1/2)($10,500)], which could not be deducted. The following amounts relate to the year ending December 31, 2020: Ms. Claus has no other source of income or deductions in either year and does not anticipate realizing capital gains in the foreseeable future. Assume she wishes to minimize her net capital and non-capital loss carry overs at the end of 2020, without regard to her ability to claim her tax credits for the preceding year (2019). Calculate her Net Income For Tax Purposes and Taxable Income for 2019 and 2020 and any amended amounts for 2019. Indicate the amount and type of any losses available for carry forward at the end of 2020.

Question

Ms. Jean Claus has an unincorporated business with a December 31 year end. During 2019, its first year of operation, the business has net business income of $45,000. The business also had an allowable capital loss during the year of $5,250 [(1/2)($10,500)], which could not be deducted. The following amounts relate to the year ending December 31, 2020:  Ms. Claus has no other source of income or deductions in either year and does not anticipate realizing capital gains in the foreseeable future. Assume she wishes to minimize her net capital and non-capital loss carry overs at the end of 2020, without regard to her ability to claim her tax credits for the preceding year (2019). Calculate her Net Income For Tax Purposes and Taxable Income for 2019 and 2020 and any amended amounts for 2019. Indicate the amount and type of any losses available for carry forward at the end of 2020.

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The Answer of Ms. Jean Claus has an unincorporated business with a December 31 year end. During 2019, its first year of operation, the business has net business income of $45,000. The business also had an allowable capital loss during the year of $5,250 [(1/2)($10,500)], which could not be deducted. The following amounts relate to the year ending December 31, 2020:  Ms. Claus has no other source of income or deductions in either year and does not anticipate realizing capital gains in the foreseeable future. Assume she wishes to minimize her net capital and non-capital loss carry overs at the end of 2020, without regard to her ability to claim her tax credits for the preceding year (2019). Calculate her Net Income For Tax Purposes and Taxable Income for 2019 and 2020 and any amended amounts for 2019. Indicate the amount and type of any losses available for carry forward at the end of 2020.

Ms Jean Claus Has an Unincorporated Business with a December