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

Computation, "Alfred E. Old and Beulah A. Crane, each age 42, married on Se...

"Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2010. Alfred and Beulah will file a joint return for 2011. Alfred''''s Social Security number is 111-11-111

Investment tax credit, Investment T ax Credit A reduction i...

Investment T ax Credit A reduction in corporate income taxes is equal to a percent of the cost of a new asset in the year that the new asset is placed in the servic

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

How to find...., How do I find the original price of an item after the tax ...

How do I find the original price of an item after the tax was placed?

Accounting for income taxes, Gustav Ltd commenced operations on 1 July 2011...

Gustav Ltd commenced operations on 1 July 2011 and presents its first statement of comprehensive income for the year ending 30 June 2012 and first statement of financial position a

Digressive tax, what is the dis advantage of digressive tax?

what is the dis advantage of digressive tax?

Capital gains tax, Critically evaluate overseas experiences with this form....

Critically evaluate overseas experiences with this form.

Evaluate the disclosures on pensions , Consider a multinational listed comp...

Consider a multinational listed company that has recently carried out an acquisition. You may also select a company that carried out an acquisition long ago as long as there is inf

Indicate the amount of the reserve, During February, 2010, Jacob's Jewels s...

During February, 2010, Jacob's Jewels sells a broach for $428,000. The cost to the business of this necklace as $212,000, resulting in a gross profit of $216,000. The $428,000 sale

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.

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