On 2 March 2021, Kylie sold the following overseas assets which she bought before she came to
Question:
On 2 March 2021, Kylie sold the following overseas assets which she bought before she came to Australia:
60,000 shares in a US company: acquired on 1 May 1982 at a cost of $30,000 and was sold for $70,000. The market value was $12,000 as at 1 August 2019.
A vintage motor vehicle built in 1950: acquired on 15 November 2015 at a cost of $300,000 and was sold for $450,000. The market value was $280,000 as at 1 August 2019.
• An investment flat in New York: acquired on 15 June 2005 at a cost of $500,000 and was sold for $580,000. The market value was $650,000 as at 1 August 2019.
Kylie still maintains a bank account at the Bank of New York in New York which deposited a total of $500 interest income into her bank account during the year 2020/2021. Bank of New York Paid 15% withholding tax to the US tax authority, Internal Revenue Service.
REQUIRED
1. Advise Kylie on what amounts have to be included in her taxable income for the 2020/2021 tax year. (18 Marks)
2. Calculate the assessable income which Kylie needs to declare in her income tax return. (2 Marks)
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella