Discuss each of the above payments to Barbara separately

Reference no: EM132309613 , Length: word count:2000

Assignment Questions -

Question 1: Your client Helen wants to fund her business as a fashion designer, therefore she has sold some of the assets as follows:

1- An antique impressionism painting Helen's father bought in February 1985 for $4,000. Helen sold the painting on 1 December 2018 for $12,000.

2- Helen sold her historical sculpture on 1 January 2018 for $6,000. She has purchased the piece on December 1993 for $5,500.

3- An antique jewellery piece purchased in October 1987 for $14,000. Helen sold the antique jewellery piece on 20 March 2018 for $13,000.

4- Helen sold a picture for $5,000 on 1 July 2018. Her mother purchased the picture in March 1987 for $470

Advise the Capital Gain Tax consequences of the above transactions.

Question 2: Barbara is an economist researcher and commentator. The Eco Books Ltd offers her $13,000 for writing a book about economics principles. Barbara has never written a book about economics principles, but accepts the offer and writes the economics book called 'Principles of Economics'. She assigns the book's copyright for $13,400 to The Eco Books Ltd. The book is published and she is paid. She also sells the book's manuscript to the Eco Books Ltd's library for $4,350 plus several interview manuscripts she has collected while writing the economics book for which she receives $3,200.

Discuss each of the above payments to Barbara separately and states if these are income from Barbara's personal exertion. Would your answer differ if Barbara wrote the Principles of Economics' book before signing a contract with The Eco Books Ltd in her spare time and only decided to sell it later?

Support your answer by referring to relevant statutory and case law.

Question 3: Patrick paid $52,000 to his son David to provide some assistance in his newly started business. They agreed that David repay his father $58,000 at the end of five years. Patrick provided this loan to David without any formal agreement or security deposit for the sum lent. Patrick told his son that he need not pay interest. However, David repaid the full amount after two years through a cheque, which was included an additional amount equal to 5% on the amount borrowed.

By referring to relevant statutory and case law, you need to discuss the effect of these arrangement on the assessable income of Patrick.

Refer to few cases: 1 of them is the one below

- Federal wharf Co Ltm vs DCT

- Lomax vs Peter Dixon

Assignment structure should be as the following (student responses involves calculations, and students must refer to the relevant legislation and cases whenever required according to the questions).

Questions 1:

Capital Gain Tax regarding antique impressionism painting.

Capital Gain Tax regarding historical sculpture.

Capital Gain Tax regarding antique jewellery piece.

Capital Gain Tax regarding picture.

Questions 2:

Discuss Barbara 's income under the case scenario.

Discuss Barbara 's income under the alternative scenario.

Questions 3:

Discuss the effect of these arrangement on the assessable income of Patrick.

Note - Length: 2000 words and References: Harvard rule.

Reference no: EM132309613

Questions Cloud

What is the upper control limit for c chart : Trinity Hospital in the Philippines has been experiencing an increase in the errors related to the medication administered to patients.

Discuss impact of price elasticity of supply and demand : Picture supply and demand for this commodity and try to analyze its price action. Discuss impact of price elasticity of supply and demand in short and long term

Construct a p-chart with 3s control limits : The inspection data for 15 days of production shown that the average fraction of defective units per day is 0.075. Construct a p-chart with 3s control limits

Understanding of the children health insurance program : This assignment will demonstrate your understanding of Children's Health Insurance Program. You find more relevant from professional point

Discuss each of the above payments to Barbara separately : Discuss each of the above payments to Barbara separately and states if these are income from Barbara's personal exertion

Create all the relations in a microsoft access database : COIT20247 Database Design and Development, Central Queensland University, Australia: Create all the relations in a Microsoft Access database.

Implement solution algorithm using basic programming : Develop self-reliance and judgement in adapting algorithms to diverse contexts - Design and write program solutions to identified problems using accepted

What might be some fruitful questions to ask about the issue : What might be some fruitful questions to ask about this issue? (Helpful open-ended questions about a complex issue often start with a "why" or "how")?

Concept of balanced scorecard and competencies : Using the concept of Balanced Scorecard and Competencies, what do you learn about Good Hotel that is important to strategy creation for them?

User Account

All Pages