What would have been the cgt consequences of each

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

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