Calculate Gretas minimum taxable income

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Question - Greta Snow is a full-time teacher, and lives in the country with her family. Greta farms on a part-time basis. Greta earned $85,000 in 20X6 at her full-time teaching job. During 20X6 she had a farm loss of $12,000.  She sold shares of XYZ Corporation which cost $2,000 in 20X1, for $6,000. Greta received a $1,000 non-eligible dividend in 20X6 (actual amount).

Greta has asked you to help her prepare her 20X6 tax return for the year, and provides you with the following additional information:

Losses carried forward from 20X5: Allowable capital losses $10,000, and non-capital losses $2,000.

Greta also had an allowable business investment loss of $4,000 being carried forward from 20X5.

Required - Calculate Greta's minimum taxable income from 20X6 using the section 3 order. Identify any losses available for carryover and indicate when they expire.

Reference no: EM132521788

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