Calculate the net capital gain that maria should include

Reference no: EM132739178

Question - Maria is an investor and over the years has acquired and disposed of a number of assets. She has kept records of all these transactions. During the year ended 30 June 2020, Maria disposed of several assets. As a result of these disposals, she made a number of capital gains and losses:

Profit on sale of trading stock 15,000

Loss on disposal of motor vehicle (5,000)

Gain on disposal of vacant block of land (acquired 1/9/19) 17,000

Gain on sale of shares 4,250

Loss on sale of shares (2,630)

Loss on disposal of caravan (cost $25,000) (5,000)

Loss on disposal of antique watch (cost $4,000) (560)

Gain on disposal of investment property (acquired 24/12/2004) 162,000

Capital losses carried forward from previous years:

Loss on disposal of painting 1,200

Loss on disposal of shares 12,000

All assets, other than the land, had been owned by Maria for more than 12 months and had been acquired since December 1999.

Required -

Calculate the net capital gain that Maria should include in her tax return for the year ended 30 June 2020 and any losses that can be carried forward to future years.

Identify two (2) key features of appropriate organisational policies and procedures which Maria would need to have followed to ensure the capital gains were calculated correctly

Briefly explain how each feature in (a) above applies in the preparation of income tax documentation for individuals.

Explain how long Maria should keep her records, relevant to this tax return being lodged.

Reference no: EM132739178

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