Problem Six Shao, 54, runs a small import business from her garage at home. Due to...
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Problem Six Shao, 54, runs a small import business from her garage at home. Due to the downturn in business because of COVID-19, Shao decided to liquidate some of her assets. During April-May 2022, she sold CGT assets (see below). None of the sale of these assets was on income account. The details are: Asset/Item Motor vehicle Neck bracelet Earrings (pair) Compact disc player BMG Ltd shares BCA Ltd shares Painting Exercise bike XYZ Ltd shares Date of Purchase 14 May 2016 28 June 2011 17 June 2016 5 March 2022 12 September 1983. 16 May 2021 28 April 2021 24 May 2020 30 March 2018 Cost of Purchase $12,000 $700 $980 $450 $6,000 $11,000 $4,000 $600 $25,000 Date of Sale 2 April 2022 5 April 2022 30 April 2022 12 May 2022 15 May 2022 20 May 2022 18 April 2022 24 April 2022 27 May 2022 Sale Proceeds $5,600 $1,960 $200 $80 $36,000 $18,200 $5,240 $180 $23,420 Shao also has a [unused] net capital loss of $340 that arose from a CGT event occurring to a collectable in the 2020-21 income year. Aside from income from her business and expenses of that business, Shao did not have any other transactions that related to the 2021-22 income year. 13 From the above, what is Shao's net capital gain for the 2021-22 income year. Note, Shao wishes to minimise her net capital gains. Also advise Shao on any elections which are available to help her minimise her net capital gains, etc. Explain your advice and show calculations where required. I= Problem Six Shao, 54, runs a small import business from her garage at home. Due to the downturn in business because of COVID-19, Shao decided to liquidate some of her assets. During April-May 2022, she sold CGT assets (see below). None of the sale of these assets was on income account. The details are: Asset/Item Motor vehicle Neck bracelet Earrings (pair) Compact disc player BMG Ltd shares BCA Ltd shares Painting Exercise bike XYZ Ltd shares Date of Purchase 14 May 2016 28 June 2011 17 June 2016 5 March 2022 12 September 1983. 16 May 2021 28 April 2021 24 May 2020 30 March 2018 Cost of Purchase $12,000 $700 $980 $450 $6,000 $11,000 $4,000 $600 $25,000 Date of Sale 2 April 2022 5 April 2022 30 April 2022 12 May 2022 15 May 2022 20 May 2022 18 April 2022 24 April 2022 27 May 2022 Sale Proceeds $5,600 $1,960 $200 $80 $36,000 $18,200 $5,240 $180 $23,420 Shao also has a [unused] net capital loss of $340 that arose from a CGT event occurring to a collectable in the 2020-21 income year. Aside from income from her business and expenses of that business, Shao did not have any other transactions that related to the 2021-22 income year. 13 From the above, what is Shao's net capital gain for the 2021-22 income year. Note, Shao wishes to minimise her net capital gains. Also advise Shao on any elections which are available to help her minimise her net capital gains, etc. Explain your advice and show calculations where required. I=
Expert Answer:
Answer rating: 100% (QA)
To calculate Shaos net capital gain for the 202122 income year we need to first determine the capital gains and losses from the assets she sold during ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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