Compute scotts net capital gain or net capital loss

Assignment Help Taxation
Reference no: EM131820952

Problem: CGT tax

Scott is an accountant who purchased a vacant block of land in Brisbane on 1 October 1980. On 1 September 1986, Scott built a house on the land. At the time, the land was valued at $90,000 and the cost of construction was $60,000. The property has been rented out since construction was completed. On 1 March of the current tax year, Scott sold the property at auction for $800,000.

a) Based on the information above, determine Scott's net capital gain or net capital loss for the year ended 30 June of the current tax year.

b) How would your answer to (a) differ if Scott sold the property to his daughter for $200,000?

c) How would your answer to (a) differ if the owner of the property was a company instead of an individual?

Reference no: EM131820952

Questions Cloud

Proportion of the time the coin : Should the students interpret this result as convincing evidence that the proportion of the time the coin would land heads up is not .5?
Explain why we ignore contribution and actual return : explain why we ignore contribution and actual return when we are calculating the pension expense, which is different from the example in book
Teen boys forget whatever it was : An article titled "Teen Boys Forget Whatever It Was" appeared in the Australian newspaper
Explain the advantage and disadvantage of outsourcing : Do you know any cultural differences between China and the States. Please do some literature and give some examples.
Compute scotts net capital gain or net capital loss : Based on the information above, compute Scott's net capital gain or net capital loss for the year ended 30 June of the current tax year.
How many people do not have electricity : The new goals aim to be "sustainable" - really, really, sustainable, how many times is the word mentioned in the document?
Perceived risks of heart disease and cancer : The authors of the article "Perceived Risks of Heart Disease and Cancer Among Cigarette Smokers" (Journal of the American Medical Association
Compute the discount or premium on the forward contract : The dollars that would have been paid to settle the account payable had Solanski not hedged the purchased contract
Number of initiatives on the topic of legalized gambling : A number of initiatives on the topic of legalized gambling have appeared on state ballots. A political candidate has decided to support

Reviews

Write a Review

Taxation Questions & Answers

  The income tax return may be prepared manually or using the

the income tax return may be prepared manually or using the software or some other federal income tax or information

  Evaluate price and quantity variances for nursing costs

Evaluate price and quantity variances for nursing costs and evaluate spending and efficiency variances for supplies and other variable overheads.

  What should he consider as to the years income

How should he report the future payments? Should he consider something different? What should he consider as to this year's income?

  Case study - periwinkle pty

Advise Periwinkle of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2014 and how would your answer to (a) differ if Emma used the $50,000 to purchase the shares hers..

  Calculate henrys deduction for car expenses

Calculate Henry's deduction for car expenses under each of the four methods in Div 28 of ITAA 1997. Use the "cents per kilometer" amounts for the 2009-10 year in answering this question.

  Write a report to hanson based on the information

Write a report to Hanson based on the information above. Your report should include the chargablilty of Hanson and his wife Juliana Kaur. You are also required to explain in your report the each stages taken to obtain the chargeable income.

  Ben carson proposed a tax plan based on the bible

1. for this article I post the link, can you write a short summary of what the article is about. It can be up to 4 to 5 sentences. Just to explain to students what the article is about and they can respond.

  Principal into a term deposit with the same terms

On 30 July 2011 she was paid a genuine redundancy sum of $20,000. The payment is considered reasonable and she did not have any unused long service leave or annual leave.

  Prepare dive deep waters corp federal income tax return

From the above information, prepare Dive Deep Waters Corp.'s 2016 Federal income tax return (Form 1120), including all needed supporting statements, schedules, and forms

  Journal entry of the baxter company

Baxter Company began operations in 2006 and was profitable through 2009, during which time the tax rate was 30%. At the end of 2010, the company reported a pretax operating loss of $135,000 for both financial reporting and income taxes.

  How much income will gramps recognize on the first payment

Gramps is 70 years old and Gram is 65 years old. Gramps paid $97,020 for the contract. How much income will Gramps recognize on the first payment?

  Prepare a tax research memorandum

Prepare a tax research memorandum to answer the questions raised by your client. State any assumptions you make. Is this settlement payment taxable for federal income tax purposes

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