Capital gains tax, Taxation

Assignment Help:

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.


Related Discussions:- Capital gains tax

Taxation, Alec Smart is 59 years of age and is planning for his retirement....

Alec Smart is 59 years of age and is planning for his retirement. Following a visit to his financial adviser in March of the current tax year, Alec wants to contribute funds to his

Corporation Income Tax Return Project, The following fictitious information...

The following fictitious information is provided for the ACCY 171 Spring 2013 Corporation Income Tax Return Project. Pharq Weston and Jeremy LeClair formed Modern Concepts, Inc., a

Sales tax, Arnold and Beth file a joint return. Use the following data to c...

Arnold and Beth file a joint return. Use the following data to calculate their deduction for AGI. Mortgage interest on personal residence $ 4,000 Property taxes on personal resi

Tax return, Macy had a lot of medical expenses this year that were not cove...

Macy had a lot of medical expenses this year that were not covered by her insurance (either due to a deductible, co-insurance, or co-pay). Her un-reimbursed qualifying medical expe

Deferred tax assets, Prepare answers to each of the following questions.  A...

Prepare answers to each of the following questions.  Assume a tax rate of 30%. (i) Harry Ltd has a balance of prepaid rent in the balance sheet amounting to $100 000 as at 30 Ju

Determine net operating loss carryover, Good Health Company Inc. began busi...

Good Health Company Inc. began business in 2007 and has operating results as listed below. In 2009 & 2010 it generated net operating losses of $75,000 and $120,000 respectively. Th

Uganada revenue authority, write a program on Uganda revenue authority tax...

write a program on Uganda revenue authority taxation based on import and export cargo.

Income tax liability, The following information is available for Kessler Co...

The following information is available for Kessler Company after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax

Determine the maximum cca , Lambda Ventures, an unincorporated business, ha...

Lambda Ventures, an unincorporated business, has a class 10 UCC balance on January 1, 2010 of $453,000.During 2010, it acquires additional Class 10 assets at a cost of $63,200.Also

Corporations, C corporation versus S corporation

C corporation versus S corporation

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd