Owing to his wife's ill-health during the COVID-19 pandemic, Paul sold a gift shop and an investment property in NSW and then moved to Queensland for retirement on 30 June 2022.

 Paul acquired the gift shop in North Sydney for $600,000 on 1 June 2012 and sold it for $1,000,000 on 1 June 2022. In addition, Paul received an additional amount of $100,000 on 1 June 2022 for signing a contract not to open another gift shop in North Sydney for the next five years.

 Paul acquired the investment property in NSW for $1,200,000 on 1 May 2012. Stamp duty and legal fees associated with the purchase were $50,000. He sold this investment property for $2,000,000 on 1 May 2022. Property agency costs and legal fees associated with the sale were $40,000.

 Appraise the capital gains tax consequences and determine the taxable income regarding the above-mentioned transactions for the year ended 30 June 2022. 

Answer rating: 100% (QA)

To determine the capital gains tax consequences and taxable income for Pauls transactions we need to calculate the capital gains for each asset sold a... View the full answer