For each of the following items, explain which item will be subject to capital gain and...
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For each of the following items, explain which item will be subject to capital gain and provide a reason. ITEM Diamond ring Block of land Shares Caravan Trailer used 100% for work purposes PURCHASE DATE 12/04/1992 03/10/1984 03/07/1995 12/04/2016 01/10/2018 COST $650 $50,000 SALE DATE $27,000 $5,500 02/03/2022 Contract date 28/06/2022 Settlement date 04/08/2022 $550 Contract date 29/06/2022 Settlement date 01/07/2022 12/07/2021 01/07/2021 CAV $2,398 PROCEEDS $1,850 $850,000 $5,220 $19,800 $1,000 For each of the following items, explain which item will be subject to capital gain and provide a reason. ITEM Diamond ring Block of land Shares Caravan Trailer used 100% for work purposes PURCHASE DATE 12/04/1992 03/10/1984 03/07/1995 12/04/2016 01/10/2018 COST $650 $50,000 SALE DATE $27,000 $5,500 02/03/2022 Contract date 28/06/2022 Settlement date 04/08/2022 $550 Contract date 29/06/2022 Settlement date 01/07/2022 12/07/2021 01/07/2021 CAV $2,398 PROCEEDS $1,850 $850,000 $5,220 $19,800 $1,000
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Answer rating: 100% (QA)
To determine which items will be subject to capital gain we need to compare the sale proceeds to the original cost of each item If the sale proceeds a... 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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