Albert is preparing for his upcoming retirement from work. He is selling several assets with a view to raising cash to pay for his planned trip around Australia.

During the year ended 30 June 2022, he has sold the following items:

• On 1 June, Albert sells his only place of residence for $1,300,000. Sale costs including agents commission and advertising were $17,000. This home was purchased on 27 March 2005 for $250,000. Costs of purchase included stamp duty and transfer fees totaling $8,000.
• On 11 February, he sold a Bulgarvi ring that he had been gifted by his ex-fiancé. At the date of the gift, 30 November 2009, it was valued at $4,400. It sold at auction for $2,950.
• Holden Commodore vintage motor vehicle was sold on 20 April 2022 for $65,000. It was purchased for $35,000 on 6 October 2004 for $39,000.
• He sold his Jet ski on 9 May for $16,000. He purchased it on 23 August 2010 for $24,000.
• He advises that he received a full insurance payout for his stamp collection on 30 March 2022. He had paid a collector $8,000 when he purchased it on 21 September 2016 and was valued on his insurance policy at $12,500. It was destroyed in the floods of 23 February 2022.
• Albert has a carried forward net capital loss from a previous year of $4500.

He seeks your advice as his tax agent regarding how these transactions will be treated for tax purposes.

REQUIRED:

1. Advise Albert on the tax treatment of the sale of each of his assets.

2. Calculate his net capital gain/loss for the year ended 30 June 2022.

Answer rating: 100% (QA)

1 Advise Albert on the Tax treatment of the sale of each of his assets 1 Cost of selling expenses sh... View the full answer