As a tax accountant, you are trying to prepare the income tax return for one of...

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As a tax accountant, you are trying to prepare the income tax return for one of your clients, Jennifer Gallen, for the 2020-21 income year and she included a list of CGT transactions that she entered into during this income year. • On 1 October 2020, she sold 1800 shares at the price of $76 per share. She acquired those shares in September 2017 for a total price of $88 000. Page 3 • On 30 December 2020, she sold her rental property for $920 000 after deducting all the fees and costs associated with the transaction. She bought the property in 2010 with a total cost base of $430 000. • On 3 April 2021, she received $450 000 from the disposal of other shares that she purchased in June 2020 for $320 000. In May 2021, a painting by a famous artist, which was owned by Jennifer, was stolen. Unfortunately, she did not insure this painting. She bought the painting in 2015 for $1300 and the current market value of this painting was $2600. . Also, she had a net capital loss of $230 000 from prior years that she could carry forward to offset other capital gains. Calculate the net capital gain or loss for Jennifer and apply the relevant law provisions to minimise her tax liability when relevant. As a tax accountant, you are trying to prepare the income tax return for one of your clients, Jennifer Gallen, for the 2020-21 income year and she included a list of CGT transactions that she entered into during this income year. • On 1 October 2020, she sold 1800 shares at the price of $76 per share. She acquired those shares in September 2017 for a total price of $88 000. Page 3 • On 30 December 2020, she sold her rental property for $920 000 after deducting all the fees and costs associated with the transaction. She bought the property in 2010 with a total cost base of $430 000. • On 3 April 2021, she received $450 000 from the disposal of other shares that she purchased in June 2020 for $320 000. In May 2021, a painting by a famous artist, which was owned by Jennifer, was stolen. Unfortunately, she did not insure this painting. She bought the painting in 2015 for $1300 and the current market value of this painting was $2600. . Also, she had a net capital loss of $230 000 from prior years that she could carry forward to offset other capital gains. Calculate the net capital gain or loss for Jennifer and apply the relevant law provisions to minimise her tax liability when relevant. As a tax accountant, you are trying to prepare the income tax return for one of your clients, Jennifer Gallen, for the 2020-21 income year and she included a list of CGT transactions that she entered into during this income year. • On 1 October 2020, she sold 1800 shares at the price of $76 per share. She acquired those shares in September 2017 for a total price of $88 000. Page 3 • On 30 December 2020, she sold her rental property for $920 000 after deducting all the fees and costs associated with the transaction. She bought the property in 2010 with a total cost base of $430 000. • On 3 April 2021, she received $450 000 from the disposal of other shares that she purchased in June 2020 for $320 000. In May 2021, a painting by a famous artist, which was owned by Jennifer, was stolen. Unfortunately, she did not insure this painting. She bought the painting in 2015 for $1300 and the current market value of this painting was $2600. . Also, she had a net capital loss of $230 000 from prior years that she could carry forward to offset other capital gains. Calculate the net capital gain or loss for Jennifer and apply the relevant law provisions to minimise her tax liability when relevant. As a tax accountant, you are trying to prepare the income tax return for one of your clients, Jennifer Gallen, for the 2020-21 income year and she included a list of CGT transactions that she entered into during this income year. • On 1 October 2020, she sold 1800 shares at the price of $76 per share. She acquired those shares in September 2017 for a total price of $88 000. Page 3 • On 30 December 2020, she sold her rental property for $920 000 after deducting all the fees and costs associated with the transaction. She bought the property in 2010 with a total cost base of $430 000. • On 3 April 2021, she received $450 000 from the disposal of other shares that she purchased in June 2020 for $320 000. In May 2021, a painting by a famous artist, which was owned by Jennifer, was stolen. Unfortunately, she did not insure this painting. She bought the painting in 2015 for $1300 and the current market value of this painting was $2600. . Also, she had a net capital loss of $230 000 from prior years that she could carry forward to offset other capital gains. Calculate the net capital gain or loss for Jennifer and apply the relevant law provisions to minimise her tax liability when relevant.

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To calculate Jennifer Gallens net capital gain or loss for the 202021 income year we need to conside... View the full answer