In September 2021, Dan sold:
1. his postage stamp collection for $700 - he had bought this at an online market 24 months ago for $25,000.
2. a set of rare soccer gear kits for $4,000 - this had been bought only 3 months ago for $500.
3. BHP shares for $25,000 - Dan had inherited the shares when his uncle died in 2003 – the shares had been purchased by the uncle in 1983, and when the uncle died the market value of the shares was $35,000 and their cost base for the uncle was $12,000.
4. his plane for $18,000 - Dan had paid $65,000 when he bought the plane from his friend two years ago.
5. his principal place of residence for $800,000 – Dan had paid $500,000 5 years ago. Approximately 1⁄4 of the principal place of residence was used as his dental practice. He claimed interest expense as a deductible expense for the dental practice portion.
6. his holiday house for $700,000 – Dan had paid $750,000 2 years ago. The holiday house was occasionally used for Airbnb.
Question
Explain and calculate the CGT consequences for Dan for each event.

Answer rating: 100% (QA)

1 Will be taxed as longterm capital gains 0 tax is applicable on this 2 will be taxed as normal wa... View the full answer