What amount of the taxable capital gain would arise

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Problem - In early 2016, Miss Stern advises you that it is her intention to sell both her Ottawa residence and her condominium at Mt. Tremblant. She acquired both of these properties in 2001 and has spent at least a part of each subsequent year in residence at each property. The cost of the Ottawa house was $173,000, while the Mt. Tremblant condominium was $131,000. She provides you with the following additional information:

 

City Home

Condo

Estimated Selling Price

$325,000

$304,000

Anticipated Selling Costs

13,500

12,240

She has asked you to determine the minimum taxable capital gain that would result from the sale of the two properties during 2016.

Required -

1. Which residences should be designated for which years, in order to accomplish Miss Stern's goal?

2. In addition, what amount of the taxable capital gain would arise under the designation that you have recommended?

Reference no: EM132464077

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