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Calculating the net income for tax purposes

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Determining the minimum net income for tax purposes and taxable income for an employee:

  1. Sara loaned $15,000 to lifelong ltd (a CCPC) in 2017. Due to financial difficulties, the CCPC has not paid any interest. In 2018, Sara included the accrued interest of $1,000 in her net income for tax purposes. It has been confirmed that the loan and interest are uncollectible. None of the company's assets are used in an active business.
  2. Sara sold shares of XYZ (a CCPC) in Dec. 2018 for $10,000 (original cost was $5,000). She received $9,000 in cash with the remaining payable in Dec 2019.

Question 1: How do treat these information for the purpose of calculating the Net income for tax purposes and Taxable income?

Reference no: EM132544837

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