Anne Smith acquired her house in 20X0 for $150,000 and her cottage in 20X4 for $100,000.Due to a rise in real estate prices,she decided to sell both properties and backpack around the world for two years.Both properties were sold in October of 20X8.Anne received $375,000 in proceeds for the house,and $250,000 for the cottage.
Required:
Calculate the minimum taxable capital gain that the Anne can report for her house and for her cottage on her 20X8 tax return.

Question

Quizplus · Accepted Answer

The Answer is

The capital gain on the cottage should be eliminated first as it will receive a higher exemption per year ($30,000)than the house ($25,000).

Anne Smith Acquired Her House in 20X0 for $150,000 and Her