Jim acquired a house in 2011 for $400,000. In 2013, he acquired a cottage for $150,000.

He lived in the house in the winter and in the cottage in the summer. In 2015, he sold
both properties. He received $500,000 for the house and $250,000 for the cottage.
The sales commission on the transactions were $20,000 and $10,000 respectively.
Required:
Determine the minimum taxable capital gain to be reported by Jim on the sale of the
two properties.

To determine the minimum taxable capital gain, we need to calculate the cost base and the proceeds for both the house and the cottage separately. Then we subtract the cost base from the proceeds for each property to get the capital gain. Finally, we add up the capital gains for both properties to get the total minimum taxable capital gain.

Let's start with the house:

1. Cost base of the house:
Jim acquired the house in 2011 for $400,000.

2. Proceeds from the sale of the house:
Jim received $500,000 for the house, and the sales commission was $20,000. So, the actual proceeds from the sale are $500,000 - $20,000 = $480,000.

3. Capital gain from the sale of the house:
The capital gain is calculated by subtracting the cost base from the proceeds. In this case, it is $480,000 - $400,000 = $80,000.

Now let's move on to the cottage:

1. Cost base of the cottage:
Jim acquired the cottage in 2013 for $150,000.

2. Proceeds from the sale of the cottage:
Jim received $250,000 for the cottage, and the sales commission was $10,000. So, the actual proceeds from the sale are $250,000 - $10,000 = $240,000.

3. Capital gain from the sale of the cottage:
The capital gain is calculated by subtracting the cost base from the proceeds. In this case, it is $240,000 - $150,000 = $90,000.

Finally, we add up the capital gains from both properties:

$80,000 (capital gain from the house) + $90,000 (capital gain from the cottage) = $170,000

Therefore, the minimum taxable capital gain to be reported by Jim on the sale of the two properties is $170,000.