Calculate dereks net capital gain in respect

Assignment Help Taxation

Reference no: EM133472369

Question: On 7 March 2020, Derek Gridlock, a resident taxpayer sold land and buildings for $2,800,000. Derek had originally paid $760,000 for a vacant block of land measuring 1,800 square metres on 12 July 2013.

The buildings constructed on the land included his private residence (constructed during 2014/15 at a cost of $500,000) and an investment property (also constructed during 2014/15 at a cost of $280,000).

Each of these buildings sold with half of the original land (i.e. 900 square metres).

Derek did not dispose of any other assets subject to capital gains during the 2019/20 tax year.

Calculate Derek's net capital gain in respect of the 2019/20 tax year (after allowing for the main residence exemption).

Reference no: EM133472369

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