Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A.Bill has made the following capital gains and capital losses from various transactions in the income year ended 30 June 2020: -sale of shares in

A.Bill has made the following capital gains and capital losses from various transactions in the income year ended 30 June 2020:

-sale of shares in Alpha Company: $7,900 capital gain

-sale of shares in Beta Limited: $1,500 capital loss

-purchased a 110-year old vase for more than $500: $2,830 capital gain

-sale of his rental property: $202,890 capital gain.

Bill also has a carried forward loss of $150 from the sale of a silver necklace (cost $400) and a carried forward loss of $890 from the sale of shares from the previous income year.

Calculate the total net capital gain or net capital loss that Bill must declare in his 2020 Income Tax Return. Assume Bill is not entitled to any small business concessions and that all assets were acquired at least 12 months before their sale.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contract Law Directions

Authors: Richard Taylor, Damian Taylor

8th Edition

0198870590, 978-0198870593

More Books

Students also viewed these Law questions