Capital gains tax, Taxation

Joe Smyth further advises you on the following transaction - work out the resultant capital gains tax consequences. 

Then calculate Joe's net capital gain for the 2010/11 income year (don't forget to include the capital gains and/or losses that arose from Joe's garage sale and the sale of his home in Part 1).  Note that Joe has carried forward capital losses from other assets of $200, and from collectables of $180. Joe is not entitled to use any of the small business concessions in Div 152.

(ii) Joe lived at 26 Hope Street at Parkview on the Gold Coast.  He signed the contract to purchase the $310,000 0.2 hectare property on 22 March 2003. Ownership transferred to him on 23 April 2003.

In October 2009, he decided that he and his family might enjoy a change.  So he rented a house at Broadbeach, which he and his family moved into, and then he rented out his Parkview property to tenants. Joe later placed the Parkview property on the market and sold his Parkview property for $597,000 under a contract dated 26 June 2011. In relation to the sale, he paid a $15,800 commission to the real estate agent and $2,300 in legal fees to his lawyer. The ownership transferred on 28 July 2011.

(iii) On 23 May 1985 Joe Smyth purchased a block of land for $35,000 in Brisbane on which to build a house.  After receiving quotations, Joe signed a contract on 18 June 1987 with Rapid Builders Ltd to construct the house. The house was constructed and completed in the September 1987 quarter at a cost of $65,000. 

Instead of moving into the house, Joe rented it out to tenants. He continued to do this until he eventually sold the residential property for $640,000 under a contract dated 10 June 2011 with the ownership transferring on 14 July 2011.  An independent valuation revealed that the land was worth $550,000 at the time of sale.

Posted Date: 2/27/2013 12:11:54 AM | Location : United States







Related Discussions:- Capital gains tax, Assignment Help, Ask Question on Capital gains tax, Get Answer, Expert's Help, Capital gains tax Discussions

Write discussion on Capital gains tax
Your posts are moderated
Related Questions

how are trusts considered a tax minimisation vehicle?

Loni Company paid $ 527,000 for tangible personalty in 2011 and elected to expense $ 500,000 of the cost (the limited dollar amount for 2011). Loni's taxable income before a Sectio

hi there i need help in assignment of taxation law

Suppose a resident with yearly income of $40,000.00. The Medicare Levy will be $600.00 and the taxes will be $5,550.00/year or $106.73/week. His/her net salary per year will be $33

How to raise an invoice with WCT for Civil construction job in Andar pradesh

How long should receipts be kept?


1.  The NGO called Transparency International (TI) publishes a "Corruption Perceptions Index" (CPI) that ranks countries on a scale of 0 to 10 based on how corrupt their public sec

For purposes of this problem, ignore the possibility that there might be a disguised sale, assume that DEF uses the traditional method for making § 704(c) allocations, and finally