On 1 July 2005 Ben bought a rental property for $600,000. Ben incurred the following expenses in
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Question:
On 1 July 2005 Ben bought a rental property for $600,000.
Ben incurred the following expenses in relation to this property:
Legal Fees (incurred at purchase) $25,000
Stamp Duty $23,000
Agents Commission for selling the property $15,000
Legal Fees to defend his title over a portion of the garden $5,000
Required:
(a) Calculate the COST BASE of the property (3 marks)
(b) If Ben sold the property on 30 June 2020 for $925,000, calculate his NET CAPITAL GAIN (5 marks)
(c) Ben wants to know how his Net Capital Gain will be taxed. Explain the tax consequences and refer to law.
Related Book For
Personal Finance
ISBN: 978-0077861643
11th edition
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes
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