Benjamin is an artist. He sold some assets last week. He requests you to calculate the Capital
Question:
Benjamin is an artist. He sold some assets last week. He requests you to calculate the Capital
Gain Tax (CGT) consequences of the following transactions:
He purchased the following items last eight months ago.
- an antique ceramic bowl (for $4,000),
- An antique vase (for $5,000),
- A colourful painting (for $15,000),
- A TV sound system for his personal use (for $10,000) and
- Shares of a reputed Company (for $6,000)
Last week he sold these assets as follows:
- an antique ceramic bowl (for $6,000),
- An antique vase (for $1,000),
- A colourful painting (for $ 5,000),
- A TV sound system for his personal use (for $9,000) and
- Shares of a reputed Company (for $26,000)
Based on the legal provisions, discuss capital gain tax assets and calculate his net capital gain or net capital loss for the current tax year.
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo