Marianne purchased an asset on 1 June 2008 for $50,000 and on 29 June 2018 the asset is destroyed by fire. What are the capital gains tax consequences of the fire in relation to the asset that was destroyed?  

2. Steven purchased a property on 1 July 2012 in Sydney. He immediately moved in and established it as his main residence. He moved abroad for 2 years on a work contract on 30 June 2014. The property was rented out from 1 July 2014 to 30 June 2016. When his contract was finished Steven moved back into his house in Sydney. Explain how the main residence exemption applies to this situation.

3. What are the capital proceeds for capital gains tax purposes if Mary-Anne were to gift an apartment with a market value of $285,000 to Michael?  

4. Jonathan is a Professor at the University of England. He comes to Australia under a contract to work for five months on a research project. He is single. Although he intends to leave after five months, he takes on a six-month lease for a small furnished flat near work. He also buys an old car. He spends time outside of work playing sports having joined the local rugby league club and tennis clubs. He often writes letters to everyone back in England. Jonathan intends to return to England at the end of the project. The project extends and lasts for seven months, so he negotiates an extra month on his flat's lease. Apart from depositing his salary into an Australian bank account to cover living expenses, Jonathan retains all assets and investments in England. Is Jonathan an Australian resident for tax purposes?

Answer rating: 100% (QA)

1 i The capital gains tax consequences of the fire in relation to the asset that was destroyed are as follows The asset is treated as disposed of at its market value on the date of the fire which is n... View the full answer