Wilson purchased a large piece of land on the edge of St Albert in 1989 for $150,000. He sold it on March 1, 2020 to a developer for $550,000. He received a down payment of $250,000 at the time of sale. The remaining $300,000 is to be paid to him in equal annual instalments of $100,000 beginning March 1, 2021. Calculate Wilson's maximum capital gains reserve in 2020. Show work in the space below.

Wilson purchased a large piece of land on the edge of St Albert in 1989 for $150,000. He sold it on March 1, 2020 to a developer for $550,000. He received a down payment of $250,000 at the time of sale. The remaining $300,000 is to be paid to him in equal annual instalments of $100,000 beginning March 1, 2021. Calculate Wilson's maximum capital gains reserve in 2020. Show work in the space below.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 97IIP

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