In 2022, Liane Stanfield has net income of $102,000. This includes foreign non-business income of $30,000. This amount was before the withholding of taxes by the foreign government of $6,000. In calculating her 2022 taxable income, she intends to deduct a 2020 net capital loss of $10,000 and a 2019 non-capital loss of $30,000. After applying her BPA of $14,398, the tax otherwise payable for foreign tax credit purposes is $7,790. What is the amount of Liane's foreign non-business tax credit? a. $4,500 b. $3,769 c. $2,540 d. $6,000 (CANADA TAX)

Individual Income Taxes
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ISBN:9780357109731
Author:Hoffman
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Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions
Section: Chapter Questions
Problem 49P: During 2019, Inez (a single taxpayer) had the following transactions involving capital assets: a. If...
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In 2022, Liane Stanfield has net income of $102,000. This includes foreign non-business income of $30,000. This amount was before the withholding of taxes by the foreign government of $6,000. In calculating her 2022 taxable income, she intends to deduct a 2020 net capital loss of $10,000 and a 2019 non-capital loss of $30,000. After applying her BPA of $14,398, the tax otherwise payable for foreign tax credit purposes is $7,790. What is the amount of Liane's foreign non-business tax credit?

a. $4,500

b. $3,769

c. $2,540

d. $6,000

(CANADA TAX)

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