Reference no: EM133184589

Question - Jimmy Collins, an Australian resident, exchanged contracts for the acquisition of an investment property, at market value, on 24 January 2019, paying a 10% deposit of $90,000, Property settlement was deferred unit December 2019, when the balance of $810,000 was paid, title transferred, and his name was recorded as the registered owner At the time of settlement (December 20191, the market value of the property was $1m.

He sold the property on 14 june 2020 for $1.7m.

Jimmy also had carried forward losses from previous years of $40,000 relating to the sale of shares.

Required - Answer the following two questions:

(a) Identify the type of CGT events) and the timing of the event(s).

(b) Calculate the net capital gain, if any, on the disposal of the investment property for the 2019/20 income year.