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
Explain in words and show in figures how a lump-sum government transfer can entice some workers to stop working ( and no one to start working) while a policy like EITC can entice s

Guay Corp a start up company provided services that were acceptable to its customers and billed those customers for $350,000 in 2012. However, Guay collected only $280,000 cash in

zainab ali -  i uploaded the questions that i want u to solve it . please let me know how much is it and then i will download the details ..  also please i want U.S. tutoring

evaluate the importance of the principal issue litigated in the case in question using the tax research steps outlined in Appendix A of your text.

Hi Dear, Could you please do my Project in Tax individuals class ..!! and I attached the all Instructions. Thank you

Utilize Okun's law to answer the questions below;  u t  - u t-1  = -0.4(g yt  - 3%) Assuming u t-1  = 7% a. Calculate the change in u (u t  - u t-1 ) for each of the followin

a. You are engineering a Leveraged-Buy-Out (LBO) of ACME Industries, an industrial bottle maker. After the LBO, the firm will be financed with 90% debt and 10% equity. Fred Farber,

28) Explain how Treasury Department Circular 230 differs from the AICPA’s Statements on Standards for Tax Services.

should be on 2012 forms and done in pencil. It should include a schedule that shows the fiduciary income calculation and other relevant calculations. Jack Green established the Jac

It is a tax based on the assessed value of personal property or real estate. Ad valorem taxes can be property taxes or even duty that is levied on imported items. Property ad valor