Graham is 68 years old and recently retired as an accountant after 23 years as a partner in a prestigious Adelaide accounting firm KPMG. Graham and his wife Sarah are retiring to the south of France and have sold a number of assets. Calculate the net capital gain for Graham in relation to the following events and advise the impact on his taxable income. Provide a full explanation citing relevant statute law and case law . 

1. Sale of Grand Piano Graham purchased the Piano for $10,500 in June 2005, which was in their drawing room. The piano was sold during the move for $7,500 on 1 November 2019.

1. Sale of the family home in Glen Osmond. Graham purchased the home in June 1987 for $240,000, incurring $10,000 incidental costs on the purchase. Graham and Sarah lived in the home with their three children. Graham sells the property for $1,400,000, incurring costs of $5,000. He entered into a contract for the sale of the property in May 2020, however settlement does not happen until July 2020. 

1. Sale of holiday home at Willunga. Graham purchased the home in September 1991 for $130,000, incurring $7,000 incidental costs on the purchase. Graham and Sarah used the home on weekends and in latter years had begun renting the home out for holiday letting. The property underwent a renovation in 2003 at a cost of $20,000. Graham sells the property for $840,000, incurring costs of $4,000. He entered into a contract for the sale of the property in May 2020, however settlement does not happen until June 2020. 

1. Sale of a business Graham sold his interest in the accounting firm KPMG. The buy in price when he joined the partnership was $60,000 as shown in the contract entered into dated March 1996. Fees on the purchase of $2,000 were incurred in bank and legal fees. He sells his interest to another solicitor at the firm for $700,000 which settles on 1 August 2019. Costs incurred in relation to the sale were $10,000. 

1. Sale of Car Graham sold his 1968 Jaguar for $58,000 in June 2020, which he purchased in 2000 for $23,000. The car is a well-regarded classic and highly collectable. 

1. Sale of Paintings Graham sold a number of oil paintings by various Australian artists. The paintings were all purchased separately between 2001 and 2008 for between $1,000 and $2,500 for a combined total of $10,000. They were sold for $20,000 in June 2020. 

1. Sale of Jewellery. Graham sold a set of pearls he inherited from his great aunt in England. His Aunt had purchased the jewellery in 1980. Its market value when received in June 2010 was $15,000. Graham auctioned the jewellery in June 2020 for only $5,000. 

1. Sale of antiques Graham sold the following antiques from the Willunga property: -A set of 8 Dinning Chairs purchased for $3,000 and sold for $1,000 -A Georgian Hall Table purchased for $1,500 and sold for $600 The antiques were both purchased at an auction in June 2013. All the antiques were sold in June 2020. 9. Capital losses from prior years Graham has prior year capital losses of $25,000.

Answer rating: 100% (QA)

The net capital gain for Graham in relation to the events is 227500 The impact on his taxable income ... View the full answer