Anna has been in the business of breeding stock horses on her 250-acre property for the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Anna has been in the business of breeding stock horses on her 250-acre property for the past 20 years. Now retiring from the business, Anna has decided to sub-divide and sell off her land in small parcels. She has been advised by her neighbours who have done the same thing that she will achieve a much better price for the farm by doing this. Anna engaged a surveyor and applied to the local council for the relevant development applications. Deciding to retain a block of 50 acres on which her house was situated and so that she could still keep a few of her horses. She then sub-divided the remaining land into forty blocks of five acres each. All up the sub-division work cost Anna $200,000 which included removal of trees, land levelling and road clearing. In March 2023, Anna was offered $2,200,000 by a property developer for ten of the blocks. She accepted the offer and settlement took place in April 2023. The developer then went on to connect utilities and offer house and land packages for sale. Ten of the blocks remained unsold as at 30 June 2023. Required With reference to relevant legal authority, advise Anna of the taxation consequences of the sale of the blocks. Casey has been registered for GST since she commenced her accounting business in July 2014. Anna has been in the business of breeding stock horses on her 250-acre property for the past 20 years. Now retiring from the business, Anna has decided to sub-divide and sell off her land in small parcels. She has been advised by her neighbours who have done the same thing that she will achieve a much better price for the farm by doing this. Anna engaged a surveyor and applied to the local council for the relevant development applications. Deciding to retain a block of 50 acres on which her house was situated and so that she could still keep a few of her horses. She then sub-divided the remaining land into forty blocks of five acres each. All up the sub-division work cost Anna $200,000 which included removal of trees, land levelling and road clearing. In March 2023, Anna was offered $2,200,000 by a property developer for ten of the blocks. She accepted the offer and settlement took place in April 2023. The developer then went on to connect utilities and offer house and land packages for sale. Ten of the blocks remained unsold as at 30 June 2023. Required With reference to relevant legal authority, advise Anna of the taxation consequences of the sale of the blocks. Casey has been registered for GST since she commenced her accounting business in July 2014.
Expert Answer:
Answer rating: 100% (QA)
Answer The sale of the land parcels would likely trigger capital gains tax CGT for Anna The CGT woul... View the full answer
Related Book For
Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett
Posted Date:
Students also viewed these law questions
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
CRISIS AT A LOCAL BARBERSHOP Introduction It was April and the azaleas were blooming everywhere in Longview, TX, but Tim Peterson was not enjoying the beauty around him on his day off. He was looking...
-
3. Complete all parts. Let f(x) = I 2+1 on the interval [0, 2). = x 2+1 (a) Explain why the function f(x) on interval [0,2] satisfies the Mean Value Theorem. (b) find all numbers c that satisfy the...
-
Assume that two clothing manufacturers, Lands' End and L.L. Bean, market their goods strictly by mail order. Each produces an essentially identical field coat. The cost of producing such a coat is...
-
Amarillo Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing division. All four divisions are under the control of the vice...
-
Rods \(A B\) and \(A C\) have a diameter of \(20 \mathrm{~mm}\) and are made of 6061-T6 aluminum alloy. They are connected to the rigid collar \(A\) which slides freely along the vertical guide rod....
-
Lance Prating is the controller of the Colorado Springs manufacturing facility of Prudhom Enterprises, Inc. The annual cost control report is one of the many reports that must be filed with corporate...
-
The invention relates to a community pass and method of use for the prevention of the spread of disease during a pandemic. People enter and exit the community at random and the recording and report...
-
We look at the detective novel market. Information gathered through a survey was used to Determine the following demand function and supply function: = 160-4 = 2-20 Graphically represent this console...
-
Consider the following scenario: A private school utilizes a measure with well-established predictive validity for admissions. However, members of a particular group tend to score low on this test...
-
Microsoft Corp. has net sales of $732,500, net income of $56,880, dividends paid of $13,770, total assets of $668,800, and total equity of $541,400. What is the internal growth rate?
-
Park Terrace Apartments LLC purchased a 110-story apartment building in Austin, TX. The purchase price was $25,125,000.00. They are allocating 20% of the purchase price towards the value of the land....
-
How would you apply the Vienna Index to your company and why? If you don't have a company to use it on, please use KGW Health as a model.
-
Electron Americas can manufacture the new smartphones at 50% of the sales revenue. Fixed costs for the operation are estimated to run $4.3 million per year. The estimated sales volume is 75,000,...
-
Why did Facebook decide to make it more difficult for users to control that has access to the personal information they post on the Web site?
-
You are thinking of investing in one of two companies. In one annual report, the auditors opinion states that the financial statements were prepared in accordance with generally accepted accounting...
-
The tube is subjected to a torque of 750 N. m. Determine the amount of this torque that is resisted by the gray shaded section. Solve the problem two ways: (a) by using the torsion formula, (b) by...
-
The solid shaft has a diameter of 0.75 in. If it is subjected to the torques shown, determine the maximum shear stress developed in regions BC and DE of the shaft. The bearings at A and F allow free...
-
The solid shaft has a diameter of 0.75 in. If it is subjected to the torques shown, determine the maximum shear stress developed in regions CD and EF of the shaft. The bearings at A and F allow free...
Study smarter with the SolutionInn App