Suman was a resident of Australia and gained a number of assets over the 40 year since
Question:
Suman was a resident of Australia and gained a number of assets over the 40 year since his graduation. These were:
a. On 1st July 1990 he bought his home at Burwood for $400,000 and lived there with his wife and children until he sold it on 1st June 2019 for$1,200,000.
b. Then, on 1st January 2000, Suman had bought a vacant block of land for $150,000 and since that date, he has paid rates and taxes totalling $50,000 on the block of land up to 30th June 2019. His incidental costs in buying and selling the land amount to $40,000. On the 30thJune 2019, Suman sold the vacant block of land for $300,000.
c. On the 1st July 2010, he had some spare money in his bank account which he used to buy 1,000 BHP shares for $20 per share. He sold them all on the 30th June 2019 for $35 per share.
d. Suman’s Uncle died on the 1st Jan 2019 and left Suman a bequest of $40,000 which he received on the 30th June 2019.
Explain how these transactions would be dealt with having regard to the capital gains legislation and calculate the net amount that would be added to his assessable income as statutory income for the year ending 30 June 2019.
The Legal Environment of Business A Critical Thinking Approach
ISBN: 978-0134074030
8th edition
Authors: Nancy K. Kubasek, Bartley A. Brennan, M. Neil Browne