Jay is a carpenter and runs his own business building and installing kitchen cupboards. Jay decided...

 

Transcribed Image Text:

Jay is a carpenter and runs his own business building and installing kitchen cupboards. Jay decided to sell his business and to retire when he was aged 54 years. Jay sold his business premises for $680,000 on 1 May 2021. He had inherited this building on the death of his mother in June 2008. Jay's mother was also a carpenter and had acquired the building in 2000 for $160,000 and it was valued at $520,000 at the time of her death. The company that bought the business premises from Jay paid him an additional $25,000 for his promise not to carry on another carpentry business in the local area for three years from 1 May 2021. Jay has a carry forward capital loss of $31,000 as at 30 June 2020 from the sale of shares. Question Assuming Jay is entitled to the small business CGT concessions, explain how these may apply to the capital gains made by Jay. Jay is a carpenter and runs his own business building and installing kitchen cupboards. Jay decided to sell his business and to retire when he was aged 54 years. Jay sold his business premises for $680,000 on 1 May 2021. He had inherited this building on the death of his mother in June 2008. Jay's mother was also a carpenter and had acquired the building in 2000 for $160,000 and it was valued at $520,000 at the time of her death. The company that bought the business premises from Jay paid him an additional $25,000 for his promise not to carry on another carpentry business in the local area for three years from 1 May 2021. Jay has a carry forward capital loss of $31,000 as at 30 June 2020 from the sale of shares. Question Assuming Jay is entitled to the small business CGT concessions, explain how these may apply to the capital gains made by Jay.

Answer rating: 100% (QA)

Answer Explanation Question 2 Facts Jay is a carpenter and runs his own business building and instal... View the full answer