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

Questions Cloud

Explain the concept of apparent authority : Can you explain the concept of apparent authority and how it relates to the relationship between a principal and an agent?
What will the martial deduction consequences : What will the martial deduction consequences be if the surviving spouse surrenders property to avoid a lawsuit? See Schroder v. United States, 924 F.2d 1547
About potential liability for implied warranties : A lens maker plans to sell a lens. They are concerned about potential liability for implied warranties.
Discuss the value of qualitative research : What are some ethical issues to keep in mind when using Internet-based research? How can you address these issues? Are you going to make any edits
Calculate dereks net capital gain in respect : 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
What ethical position does this require you to take : Using the relevant legislative provisions and key cases discussed in class, is the payment to Pluto Ltd deductible? What issue pertaining to the New Zealand tax
What type of us supreme court to declare the death penalty : What type of case (facts and legal issues) would it take for the US Supreme Court to declare the death penalty (as we know it) unconstitutional?
What types of taxpayers are using : What types of taxpayers are using the form 1701? Describe each briefly - When is its deadline for filing, including appllcable tax credits allowed
How you identify the students readiness for learning : How you identify the students' readiness for learning in at least two developmental domains (cognitive, linguistic, social, emotional, and/or physical developme

Reviews

Write a Review

Taxation Questions & Answers

  Prepare the corporate tax return for smart pet

You are working as a paid tax preparer for a local accounting firm. Your boss has asked you to prepare the 2015 corporate tax return for Smart Pet

  What is kevins gross profit percentage

What is the gross profit to be recognized in the current year and what is Kevins gross profit percentage

  Calculate barbs taxable income

Calculate Barb's taxable income? What nonrefundable credit is Barb eligible for based on the information you have?

  What is maximum amount that can reduce the taxable income

His taxable income was 65,000. What is the maximum amount that can reduce the taxable income under section 179 rules in 2018

  What is the appropriate tax treatment of the net gain

What is the appropriate tax treatment of the net gain or loss (ie, capital gain/loss treatment, ordinary deduction for AGI, or treatment as ordinary income)?

  Compute the alberts net tax payable for 2011

Compute the Alberts net tax payable for 2011 and the Alberts would like to know how much the mortgage payments would increase net of any change in their income tax.

  Determine which forms are necessary for jackie

Determine which forms are necessary for Jackie O. Parks tax return - Go to the IRS Web site and download the fill-in tax forms that you will need to complete: Form 1040 and the appropriate schedules.

  What is the recognized gain and the basis for the bonds

Taxpayer receives stock as a gift from his nephew. The adjusted basis of the stock is $10,000 and the fair market value is $30,000. Taxpayer trades the stock for bonds with a fair market value of $25,000 and $5,000 cash. What is his recognized gai..

  Explain tax consequences if company decides not to rebuild

Explain the tax consequences if the company decides not to rebuild. Identify the tax consequences if the company distributes the $2 million to its two shareholders, assuming that no stock was exchanged in return.

  What are the tax planning considerations

What are the tax concepts involved in completing the Schedule B and what are the tax planning considerations you took into account while completing the Schedule?

  Prepare a defensible strategy for the client

Prepare a defensible strategy for the client by using the six (6) steps in the tax research process. Propose how each of the steps provides support for the client's position.

  Determine their amount of federal tax

The genius financial advisor had taxes withheld on the transfer of annuity in the amount of $22,000.

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