Reference no: EM133169102

Question - In 2020/21, a taxpayer sold a parcel of shares for $127,000 which she acquired in November 1999 as a long term investment for $110,000.  She was delighted to profit on the sale of her jetski for $15,000 which she had purchased for $9,000 in June 2017.  She sold her car for $20,000 that she had purchase for $30,000 in July 2016.

She has an unapplied prior year capital losses of $7,000 that was made on a sale of collectables and $3,000 of unapplied net prior year capital losses on the sale of land.

What is the taxpayer's net capital gain or loss for the income year?

a. Capital gain $1,500

b. Capital Gain $17,000

c. Capital gain $3,500

d. Capital gain, $11,500

e. Capital Gain $7,000