Question

Listed Personal Property

During 2016, Jude Legal sold an important piece of jewelry for $120,000. He had paid $150,000 for this item several years ago. In 2017, he sells a block of publicly traded shares for $125,000. The adjusted cost base of these shares was $72,000. He has no other sources of income in either 2016 or 2017. Required: Determine Jude’s Net Income For Tax Purposes and Taxable Income for 2017. Indicate the amount and type of any losses available for carry forward at the end of that year. If the 2016 sale had been of publicly traded shares instead of jewelry, how would the results for 2017 be changed?

Answer 1