Bonnie is a resident taxpayer and holds several investments as an individual. Bonnie had the following...
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Bonnie is a resident taxpayer and holds several investments as an individual. Bonnie had the following transactions during the income year ended 30 June 2021: Sale of a rare book through an auction firm on 31 July 2020 for $12,000. Bonnie had purchased the book from a second-hand book shop on 8 December 2012 for $850. Sale of GHJ Ltd shares through an online stockbroker for $10,000 with a contract date of 25 March 2021. The settlement date was 29 March 2021 and $200 brokerage was subtracted from the sales proceeds before it was paid to Bonnie. On 1 April 2019 Bonnie had purchased the shares for $14,000. Sale of DEF Ltd shares through an online stockbroker for $30,000 with a contract date of 29 June 2021. The settlement date was 3 July 2021 and $600 brokerage was subtracted from the sales proceeds before it was paid to Bonnie. On 2 September 2017 Bonnie had purchased the shares for $19,000. Carried forward capital losses from previous year of $3,500 from the sale of shares, and $2,000 from the sale of an antique. Required: Advise Bonnie of the net capital gain to be included in his assessable income for the income year ended 30 June 2020. Show all explanations, calculations and references to the Income Tax Assessment Act 1997. Assume that Bonnie wishes to minimise her gain wherever possible. Bonnie is a resident taxpayer and holds several investments as an individual. Bonnie had the following transactions during the income year ended 30 June 2021: Sale of a rare book through an auction firm on 31 July 2020 for $12,000. Bonnie had purchased the book from a second-hand book shop on 8 December 2012 for $850. Sale of GHJ Ltd shares through an online stockbroker for $10,000 with a contract date of 25 March 2021. The settlement date was 29 March 2021 and $200 brokerage was subtracted from the sales proceeds before it was paid to Bonnie. On 1 April 2019 Bonnie had purchased the shares for $14,000. Sale of DEF Ltd shares through an online stockbroker for $30,000 with a contract date of 29 June 2021. The settlement date was 3 July 2021 and $600 brokerage was subtracted from the sales proceeds before it was paid to Bonnie. On 2 September 2017 Bonnie had purchased the shares for $19,000. Carried forward capital losses from previous year of $3,500 from the sale of shares, and $2,000 from the sale of an antique. Required: Advise Bonnie of the net capital gain to be included in his assessable income for the income year ended 30 June 2020. Show all explanations, calculations and references to the Income Tax Assessment Act 1997. Assume that Bonnie wishes to minimise her gain wherever possible.
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Transactions for the financial year ended on June 30th ... View the full answer
Related Book For
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
Posted Date:
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