1. Calculate the gross gain (loss) for the motorbike irrespective of whether any exemption that may apply...
Question:
1. Calculate the gross gain (loss) for the motorbike irrespective of whether any exemption that may apply
2. For the motorbike, irrespective of whether an exemption or special rule applies, you may need to calculate the Reduced Cost Base, Indexed Cost Base, or Discounted Gain (gain after applying discount).
3. Calculate the gross taxable gain (loss) for the motorbike.
Vipun gave his motorbike, valued at $6,000, to his sister in May 2020. He purchased the bike for $12,000 in July 2012. Enhancements were made in April 2015 for $2,500.
Complete the following information for CGT Event 2:
CGT Event | [ Select ] ["A1", "B1", "C1", "C2", "D1", "D2", "H1"] |
CGT Event Date | Month: Year: |
Asset Category | [ Select ] ["CGT Asset (general)", "Collectable", "Personal Use Asset", "Depreciable Asset", "Trading Stock", "Other"] |
CGT Income Year | |
Acquisition Date | Month: Year: |
Calculate the Sale Proceeds for the motorbike :
Calculate the cost base of the motorbike.
Element 1: $
Element 2: $
Element 3: $
Element 4: $
Element 5: $
Total Cost Base: $
Determine which exemption/special treatment, if any, applies to the motorbike
Main Residence Exemption - Full
Main Residence Exemption - Partial
Main Residence Exemption - Not Eligible
Disregard - Element 1 under $500
Disregard - Element 1 under $10,000
Disregard - Depreciating Asset
Disregard - Trading Stock
Disregard - Exempt Asset
Disregard - Pre CGT Asset
No Exemption Applies
Losses Disregarded
Losses Quarantined
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt , Eugene F. Brigham