During the financial year of 2020/21, Paul made the following capital gains and capital losses. Capital
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Question:
During the financial year of 2020/21, Paul made the following ‘capital gains’ and ‘capital losses’.
• Capital gain of $30,000 on the sale of his shares in ABC Co (assume this is not a ‘discount capital gain’)
• Capital gain of $20,000 on the sale of his shares in XYZ Co (assume this is a ‘discount capital gain’ that is eligible for a 50% discount)
• Capital loss of $8,000 on the sale of his apartment.
• Prior year capital loss of $4,000.
A) What is Paul’s net capital gain under s102-5?
B) Is Capital Loss tax deductible? Justify your answer.
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