Calculate basil taxable capital gain

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Question - Basil Solomon disposed of the following capital investment during 2021. Sale of a luxury rental condominium in December, 2021 for proceeds of $2,150,000. Basil had paid $1,416,000 in January, 2021 to acquire this property, but had been unable to rent it during the year. In order to facilitate the sale, Basil took back a mortgage in the amount of $1,050,000 for 5 years @ 8%. The mortgage calls for annual capital and interest payments beginning in 2022. Basil paid $118,000 in commission costs related to the sale.

Required - Calculate Basil's taxable capital gain for the 2021 taxation year.

Reference no: EM133157563

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