Solution-Determine the amount of the taxable capital gain

Determine the amount of the taxable capital gain

Reference no: EM133172211

Question - Mr. Mark Vargo has been a resident of Canada all of his life. He was recently offered a lucrative job with a reputable firm in Washington, DC. After careful decision he has decided to make the move and sever his Canadian residency.

	Adjusted Cost Base	Fair Market Value
Antique sports car	$32,000	$46,000
Personal automobile	$32,000	$18,000
Shares in Bank of Nova Scotia (a public company)	$12,000	$16,000
Shares in Vargo Ltd. (a private company)	$23,000	$17,000
Coin collection	8,000	$6,000
Cottage (not his principal residence)	$135,000	$262,000

Required - Determine the amount of the taxable capital gain or the allowable capital loss that Mr. Vargo will be required to include in his final Canadian income tax return for the current year as a result of severing his Canadian residency. Ignore any special elective options that may be available to him on leaving Canada.

Reference no: EM133172211

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Determine the amount of the taxable capital gain

Reference no: EM133172211

Reference no: EM133172211

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