Answered step by step
Verified Expert Solution
Question
1 Approved Answer
australian tax law (deduction) - The impact of the $3,000 lease premium for Abigail (as far as CGT is concerned); and - The net capital
australian tax law (deduction)
- The impact of the $3,000 lease premium for Abigail (as far as CGT is concerned); and - The net capital gain for Abigail for the 2022-23 tax year. Tammy had purchased a rental property on 1 January 2015 for $500,000. She paid stamp duty of $30,000. She immediately rented it out. Tragically, Tammy died on 1 February 2018, at which time her daughter Abigail inherited it. At the time, its market value was $800,000. Abigail continued to have the house rented out to a tenant. In March 2019, Abigail. borrowed $60,000, which she spent on renovating the kitchen and bathroom of the house. The house was so nicely renovated that when looking for a new tenant in May 2019 , the new tenant offered to give Abigail an extra $3,000 lease premium on bp of the rent in exchange for being offered a 12 months lease. In April 2023, Abigail decided to sell this house. She sold it to her brother Neil for $900.000, though the house was worth $1 million at this timeStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started