The following financial information is provided for the 2022 taxation year for Angela Fowler:
Interest income $ 22,000
Net loss from retail store for the year ended December 31, 2022 (9,000 )
Gain on sale of public corporation shares 10,000
Loss on sale of shares of a small business corporation (12,000 )
Dividends from foreign corporations, net of $100 withholding tax 1,900
Loss on sale of land that was originally purchased to build a rental property.
The project was cancelled after a rezoning application was lost. (36,000 )
Gain on sale of an oil painting 6,000
Director’s fees for attendance at corporate meetings 8,000
Loss on sale of personal jewellery (7,000 )
In 2022, Angela gifted shares of a public corporation to her 16-year-old son. The shares, which originally cost $10,000, had a value of $12,000 at the time of the gift.
Also in 2022, Angela had a rental loss of $5,000 (before amortization/depreciation and capital cost allowance). The property was originally purchased for $74,000 (land − $11,000; building − $63,000). The class 1 building had an undepreciated capital cost of $50,000 at the end of the previous year. On the last day of 2022, Angela sold the property for $104,000 (land − $14,000; building − $90,000). She intends to purchase a new rental property in early 2023 for $200,000 (land − $22,000; building – $180,000).
In the previous year, by agreement, Angela obtained the exclusive licence to distribute a certain product in Canada. In 2022, she divided the country into six sales territories and sold 10-year sub-licences to individuals in each territory. Total proceeds were $26,000.
Required:
1. Calculate Angela’s net income for tax purposes for the 2022 taxation year in accordance with the aggregating formula of section 3 of the Income Tax Act. (Assume Other Deductions total $2,000.)
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