Rachael acquired a number of assets on different dates, as indicated below. All the assets were sold on 30 June 2021 since Rachael planned to live in Sri Lanka and work for the rural community. 

1. Rachael acquired an investment property in Bendigo for $260,000 on 24 June 1989. Given there is plenty of vacant land in the backyard, she built a granny flat that cost $75,000 on 30 July 1995. The house was sold for 575,000. 

2. Rachael inherited a watch on 15 July 1989 when the market value of the watch was $11,500. She received proceeds of $16,500 selling the watch. 

3. She purchased a car for 60,000 on 12 June 1998 and sold it for $12,000. 

4. Rachael also purchased a holiday house in Bateman Bay for $330,000 on 30 June 1985. This holiday house was sold for 695,000 on 30 June 2021. 

5. Rachael also purchased a unit in a big block in Sydney for $430,000 on 29 June 1997 for herself to live in. Upon leaving for Sri Lanka, Rachael decided to gift it to her sister. The market value of the unit is $1,120,000 to date. 

6. Rachael also purchased virtual currency for $60,000 on 29 December 2019 and sold it for $55,000 on 30 June 2021.

Required 

• Calculate the minimum capital gains/losses for each of the above items Rachael purchased. 

• Determine the overall taxable capital gains/losses Rachael needs to include in her tax return for the 2020-2021 tax year.

Answer rating: 100% (QA)

Page No Date in Bendigo Holding Periodo 24 June 1989 to ... View the full answer