A taxpayer purchased a vase in 2007 for $380 at the local market in her suburb. In
Question:
A taxpayer purchased a vase in 2007 for $380 at the local market in her suburb. In 2020 she discovered the jug was made in 1880 and was originally part of a silver collection. In June 2021 she sold the jug for $15,000 at an auction.
a.
The taxpayer will not pay any tax on the gain from the sale of the vase.
b.
The taxpayer will include an amount of $7,255 in her assessable income under s 102-5 ITAA97, corresponding to the net capital gain on the vase.
c.
The taxpayer must apply the discount method to calculate the net capital gains on the vase.
d.
If the taxpayer had made a loss on the sale of the vase, she would have been able to offset that loss against any other capital gains.
South-Western Federal Taxation 2020 Comprehensive
ISBN: 9780357109144
43rd Edition
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman