Advise both Cynthia and Andreas on the CGT consequences of their share sales.

 Calculate net capital gains for both Cynthia and Border Pty Ltd the 2021/22 tax year. You must provide all methods available for her and choose the best method to minimize net capital gains.

Since 1997 Andreas and Cynthia have invested in various Australian shares. Cynthia acquired the shares in her own name whereas Andreas had his company Border Pty Ltd acquire his share portfolio. On 20 August 2021 both Cynthia and Andreas made a decision to dispose of their Australian shares and the proceeds and purchase prices information are as follows.

Cynthia's share portfolio

Shares	Purchase date	Costs	Proceeds
Mega Mining Ltd	1 April 1997	$8,000	$12,400
Global Media Ltd	10 June 2000	$15,000	$90,000
Watson Tel Ltd	17 May 2013	$34,000	$33,500
Qantas Ltd	8 January 2021	$17,900	$21,000

Border Pty Ltd share portfolio

Shares	Purchase date	Costs	Proceeds
Xero Ltd	28 March 2018	$45,000	$62,000
Qantas Ltd	26 June 2021	$21,600	$28,800

Other information Cynthia has a capital loss of $600 carried forward from sale of painting during 2018.

Required

Answer rating: 100% (QA)

To advise both Cynthia and Andreas on the Capital Gains Tax CGT consequences of their share sales we ... View the full answer