The following 2 cases make different assumptions with respect to the amounts of income and deductions that are available to Carl Suzak, a Canadian resident, for the current year
CASE ACarl had employment income of $126,100, as well as income from an unincorporated business of $14,100. A rental property owned by Carl experienced a net loss of $4,600. Dispositions of capital property during the current year had the following results;
Capital gains $56,400
Capital losses $72,300
In compliance with the terms of his divorce agreement, Carl paid deductible spousal support of $600 per month for the entire year. In addition to the preceding items, Carl had a winning lottery ticket which resulted in his receiving a price of $562,000
CASE BCarl had employment income of $89,000, interest income of $3,100 and net rental income of $8,600. Carl also operated an unincorporated business. Unfortunately, during the current year, it experienced a net loss of $187,400. Dispositions of capital property during the current year had the following results:
Capital Gains $46,200
Capital losses $26,300
Also during the current year, Carl made deductible contributions of $8,600 to his RRSP
Questions
For each case, calculate Carl's net income for tax purposes (division b income) indicate the amount and type of any loss carry overs that would be available at the end of the current year.