What would have been the cgt consequences of each

Assignment Help Taxation

Reference no: EM133354114

Question: McGarth, an Australian resident for tax purposes, disposed of the following assets: (i) Sold a Grumbacher Acrylic painting (acquired 8 November 2013 for $8,000) on 31 March 2021 for $7,000. (ii) Sold his car (acquired 8 April 2014 for $24,000) on 21 May 2021 for $12,000. (iii) Sold his home in Toowoomba (acquired 31 December 1984 for $325,000) on 30 May 2021 for $500,000. (iv) Sold 1,000 Commercial Bank shares on 1 June 2021 for $80,000. The brokerage fee for the sale was $96. The shares were acquired on 2 Dec 1997 for $55,000 and the brokerage fee at the time was $66. The above transactions are the only relevant transactions for the 2020/21 income year.

Required: (a) What would have been the CGT consequences of each of the above transactions? Explain your reasoning. (b) Based on the transactions above, calculate McGarth's net capital gain or loss for the year ending 30 June 2021. Note: For the year ending 30 June 2020, McGarth had a net capital loss of $2,000

Reference no: EM133354114

Questions Cloud

Explain development of slavery in north america : Explain the development of slavery in North America. When did slavery become widely used in the British colonies?

What outcome can be expected if gregory applies : Gregory missed making the premium payments for two consecutive months, and his policy lapses. What outcome can be expected if Gregory applies for reinstatement

Speech using informative pattern of organization : Organize the main points of your speech using an informative pattern of organization.

Product release virtual meeting with big potential client : Imagine your manager assigned you a task to conduct an important new product release virtual meeting with a big potential client.

What would have been the cgt consequences of each : What would have been the CGT consequences of each of the above transactions? Explain your reasoning. Based on the transactions above, calculate McGarth

What is the amount of cash received in dividends : What would be the change to Net cash provided by operating activities? Ignore any effect on taxes. What was the Company's Basic & Diluted Earnings per Share

Explain and calculate the net income of the trust : Explain and calculate the net income of the Trust. Explain who is liable to pay the tax on the net income of the trust, on what basis and at what rates.

Facilitators of professional developments : Why is it important for facilitators of professional developments to be experienced in using knowledge so that when training others they can provide real time

What is the purpose of maintaining a franking account : Is BrilliantLed required to maintain a franking account? What is the purpose of maintaining a franking account? What arethe total tax consequences

User Account

All Pages