Reference no: EM132629165

Problem 1: Select the correct CGT consequence, meaning will the event give rise to CGT even or not?

Kate is a client of yours who sold some of her art collection by some artists. It consisted of the following artistic works:

• A painting purchased in December 1986 for $150,000. He sold it on 10 December of the current tax year for $149,000.
• An antique purchased in September 1998 for $8,000. He sold it on 1 March of the current tax year for $8,100.
• A sculpture purchased in April 1975 for $70,000. She sold the sculpture on 1 July of the current tax year for $170,000.
• A stamp collection purchased in June 1977 for $400. She sold it on 10 June of current tax year for $1,000.
• An antique purchased in 10 August 1985 for $500. She sold it on 23 May of the current tax year for $8,000.

A.No, ignore any capital gain or loss.

B.Yes, a CGT even has happened and capital gain/loss needs to be calculated.