Mr. Fox sells land with the following details.
|
Proceeds of Disposition |
$895,000 |
|
ACB of Land |
135,000 |
|
Selling costs |
35,800 |
The terms of sale require a down payment in the current year of $447,500 and the balance to be paid on January 1 of subsequent years, a principal payment equal to $44,750.00. Mr. Fox wishes to use reserves to defer the payment of taxes on capital gains for as long as possible.
REQUIRED:
For the current and next 2 years (in total 3 years) compute the capital gains taxation.