Your client bought investment property at 157 Kissing Point Rd, Dundas, NSW 2117 for $445,000 under a contract dated 01 May 1998. The contract provided for the payment of a deposit of $85,000 on that date, with the balance of $360,000 to be paid on the settlement on 15 May 1998. Your client paid a stamp duty of $10,500 on 30 May 1998. On 1 June 1998, he received an invoice for solicitor’s fees of $6,300, which he paid as part of the settlement process. He sold the property on 01 July 2018(the day the contracts were exchanged) for $730,000. He incurred costs of $1,500 in solicitor’s fees and $30,000 in agent’s commission. 

During the entire ownership period, the property was used for producing assessable income. 

Your client had the following expenses for this property: 

✓ Council rates $5,800 (not claimed in the previous tax return) 

✓ Land tax $7,700 (not claimed in the previous tax return) 

✓ Maintenance $20,100 (not claimed in the previous tax return) 

✓ Bank Interest $70,100(claimed in the previous tax return).

Prepare a capital gain/loss schedule.

Answer rating: 100% (QA)

Step 1 Working notes Cost of investment proerty Particulars Amount Amount Purchase pr... View the full answer