Julie Olsen Purchased a Home in 2012 for $150,000 and a Cottage

question 1

Essay

Julie Olsen purchased a home in 2012 for $150,000 and a cottage in 2016 for $100,000.Due to a rise in real estate prices, Julie decided to sell both properties and backpack around the world for two years.Both properties were sold in October of 2020.Julie received proceeds of $375,000 for the house, and $250,000 for the cottage.
Required:
Calculate the minimum taxable capital gain that Julie will report for the house and cottage on the 2020 tax return.Show all calculations, identifying the taxable capital gain for each property.

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Definitions:

Linear

Describes a structure, process, or mathematical function that proceeds or is arranged in a straight line or sequence.

Phosphine

A toxic, colorless, flammable gas with the chemical formula PH3, used in the semiconductor industry and as a pesticide.

Triangular Pyramid

A geometric solid with a triangular base and three faces that are also triangles, meeting at a single point called the apex.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, known for its sharp, pungent odor and use in fertilizers and cleaning products.