Determine the net capital gain

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Reference no: EM133433252

Question: Ned Unabomber, a resident taxpayer, sold the following assets during the 2019/20 tax year:

PURCHASE ACQUISITION DISPOSAL SALE

ASSET COST DATE DATE PRICE

Investment Property $120,000 01/05/07 31/12/19 $350,000

Motor Vehicle 25,000 30/08/11 24/02/20 27,000

Painting 8,000 10/03/14 19/07/19 12,900

Antique Furniture 18,400 25/12/92 01/06/20 26,300

Antique Vase 400 17/03/96 03/09/19 1,300

Stereo System 1 6,000 08/05/97 16/06/20 5,100

Shares - Broken Ridge Mining NL (Note 1)

8,000 16/04/05 25/05/20 2,500

Shares - Rock Solid Bank 8,000 16/04/17 25/05/20 11,200

(Note 1) Note 1 The parcels of shares each incurred $80 of selling expenses on disposal.

Note 2 Ned had $3,000 of capital losses from previous years. These related to the sale of jewellery

Determine the net capital gain

Hint: Check both indexed and discount methods where available

It is generally preferable to apply a capital loss against an indexed gain, rather than a discounted gain as the full loss is maintained.

Determine the net capital gain-

Total Collectables $

Total Personal and other use $

Total Other Method and indexed $

Net gain before discount $

Discount $

Net capital gain $

Reference no: EM133433252

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