Advise charlie on his tax implications

Assignment Help Taxation
Reference no: EM131040267 , Length: word count:1000

Question

Charlie owns a block of three hectares of land in Yarra Valley on which a house is situated. That property was purchased in 1990 for $250,000 for the land and $300,000 for the house. He moved into the property as his main residence as soon as practicable. He lived there until 1997 before he migrated to Canada. At that time the land is worth $350,000 and house is worth $270,000.

In 2000, Charlie bought a house in Canada where he resided. He continued to rent out his property in the Yarra Valley before it was sold in 2015. The property was sold for $800,000, being land of $450,000 and house $350,000.

Required

Advise Charlie on his tax implications relating to the Yarra Valley property.

You are required to cite the relevant legislation and case law.

Attachment:- Capital gains tax.rar

Reference no: EM131040267

Questions Cloud

Determine the purpose of the feedback loop design : Write clearly and concisely about topics related to Homeland Security Organization and Administration using proper writing mechanics and technical style conventions.
Effectiveness of centralized economic planning : Which of the following will reduce the effectiveness of centralized economic planning?
What do you think the west can teach the east : Do both sides of the world go through similar problems? Or are they different? And more importantly, do you think each side can learn something from the other?
Length of a contraction : Which of the following statements is FALSE? A) The rate of change in economic activity is used to assess whether an economy is expanding or contracting.
Advise charlie on his tax implications : Charlie owns a block of three hectares of land in Yarra Valley on which a house is situated. Advise Charlie on his tax implications relating to the Yarra Valley property
Ineffective method to organize an economy : Central planning is an ineffective method to organize an economy because 1. most central planners are less intelligent than business entrepreneurs in market economies.
Explain which principles you applied : find a current event from the past two years and discuss the administrative responsibility to the stakeholders, organization, and public regarding the issues in described in the current event. Justify your response with one or two examples.
Handed enforcement of contracts : Even-handed enforcement of contracts fuels economic prosperity because it
Sustain rapid economic growth : Which of the following is most important if a country is going to achieve and sustain rapid economic growth?

Reviews

Write a Review

Taxation Questions & Answers

  What is needed to implement the conversion strategy

What is needed to implement the conversion strategy? Explain how implicit taxes may limit the benefits of the conversion strategy.

  What is susans basis in the silver stock

David, a lawyer (age 65), is married and files a joint return. His spouse, Susan, is also 65 years of age. During the current year he engages in the following activities and transactions.

  Claim to reduce his payments on account

Evan did not receive a tax return for 2010-11 but he was aware that he had income which had not been assessed to tax. He notified HMRC of this fact on 2nd October 2011 and a return was issued to him on November 15th 2011. He completed the return a..

  Compute maximum depreciation deductions including expense

Compute maximum 2014 depreciation deductions including §179 expense (ignoring bonus depreciation). Compute maximum 2015 depreciation deductions including §179 expense (ignoring bonus depreciation).

  What are the tax consequences of the stock redemption

Fred is the sole shareholder of Ponce Corporation, having a basis of $90,000 in 1,000 shares of Ponce common stock. Last year, Ponce (E & P of $500,000) issued a dividend of 2,000 shares of preferred stock to Fred

  Write a letter informing john of the tax consequences

Write a letter informing John of the tax consequences of his proposed actions. His address is 1005 NE 10th Street, Gainesville, GA 32612.

  Taxable income

1.At the end of 2012, Payne Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book tax difference of $75 million in a liability for estimated expenses.

  Determine the marginal tax rate

Determine the marginal tax rate and the effective tax rate for each of the C corporations and describe why marginal tax rate for a C corporation can exceed 35%, but effective tax rate cannot.

  Pre-tax discount rate for ilayimi

The profit after tax from continuing operations of Ilayimi, after all of the above events were taken into account, amounted to R12 523 500 for the year ended 31 December 2011.

  Individual tax task on financial information

Spouse A is one of the partners in Fan Company A. Spouse A is married and has a total of three children living in the household. Spouse A and Spouse B have one 10-year-old child together.

  When will the statute of limitations expire

Denise filed her 2003 tax return on February 4, 2004. There was no material understatement of income on her return and the return was property signed and filed. When will the statute of limitations expire for Denise's tax return?

  Find total cost exceeds total revenue

Find total cost exceeds total revenue at all output levels and evaluate total variable cost exceeds total revenue at all output levels

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