Rachel is your client and has come to you to prepare her tax return. During the...
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Rachel is your client and has come to you to prepare her tax return. During the 2019-20 financial year, she has disposed of the following assets: Rachel purchased a yacht in May 2017 from an auction warehouse for $25,000. Rachel has spent $35,000 on improvements to the yacht. In June 2020 Rachel sells the yacht for $45,000. (b) (a) Rachel purchased a vacant block of land in May 1991 for $250,000. In April 1998 Rachel subdivides the vacant block of land into two equal portions, both portions are valued at $200,000 each. In May 2020 Rachel sells one of the vacant blocks of land for $300,000 Rachel acquired block of land for $80,000 on the 10th October 1978. On the 20th June 1990 (c) Rachel builds a house on the same block of land for $550,000. In 10th May 2020 Rachel sales the house and the land for $850,000. During the period 20th June 1990 and 10th May 2020 the property was rented to an unrelated party REQUIRED: Calculate Racheľ's Capital Gain, subject to Tax for the year ending 30 June 2020. Provide justification for your calculations using legislation and case law. Rachel is your client and has come to you to prepare her tax return. During the 2019-20 financial year, she has disposed of the following assets: Rachel purchased a yacht in May 2017 from an auction warehouse for $25,000. Rachel has spent $35,000 on improvements to the yacht. In June 2020 Rachel sells the yacht for $45,000. (b) (a) Rachel purchased a vacant block of land in May 1991 for $250,000. In April 1998 Rachel subdivides the vacant block of land into two equal portions, both portions are valued at $200,000 each. In May 2020 Rachel sells one of the vacant blocks of land for $300,000 Rachel acquired block of land for $80,000 on the 10th October 1978. On the 20th June 1990 (c) Rachel builds a house on the same block of land for $550,000. In 10th May 2020 Rachel sales the house and the land for $850,000. During the period 20th June 1990 and 10th May 2020 the property was rented to an unrelated party REQUIRED: Calculate Racheľ's Capital Gain, subject to Tax for the year ending 30 June 2020. Provide justification for your calculations using legislation and case law.
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Answer rating: 100% (QA)
Answer Legislative references Sec 1085 Subsection 108C section 104... View the full answer
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date:
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