Australian taxation

Question 2 e document will QUESTION 2 points QUESTION 1 (Continued) PART B: On 16 August 1996, Sophie signed a contract to purchase a rental property in Greenslopes for $520,000. Sophie borrowed 5380,000 to fund the purchase of the property from NAB Bank and contributed the remairting $140,000 funds from her own savings. Sophie incurred the following costs on 15 September 1996 (being the date of settiement) property stamp duty on acquisition legal fees on acquisition of property NAB loan application fees floan period is 20 years) 112280 920 1.590 Tenants were already occupying the rental property when Sophie purchased the property and the property continued to be income producing during the entire period of ownership Sophie provides you with a list of renovations that she has made to the property since she purchased the property 1. In August 2002, Sophie renovated the kitchen at a cost of $28,000, 2. In June 2016, Sophie purchased a refrigerator, washing machine, and dryer for the tenant at a cost of $8,400 On 9 March 2020, Sophie sells her Greenslopes rental property under a contract of sale for $880,000. Sales commission came to $27,340. For the entire ownership period, Sophie has also claimed capital works allowance deductions totalling 535,900 pursuant to Division 43 of the ITAA (1997), Sophie has also incurred the following expenses in relation to the Greenslopes rental property over the period of ownership: $ and Submit to sow and submit. Click Save All Answers to save all answers Question Completion Status: TITZUZU, supereerpes rencar property under contracerse CONSTITUTE For the entire ownership period, Sophie has also claimed capital works allowance deductions totalling $35,900 pursuant to Division 43 of the ITAA (1997) Sophie has also incurred the following expenses in relation to the Greenslopes rental property over the period of ownership $ Interest expense on loan landlord insurance minor deductible repairs and maintenance depreciation on items in the rental property council rates and water charges 97,700 12,140 5,030 23.400 19,450 Lastly, Sophie informs you that she has carry-forward capital losses of $20,660 relating to the sale of some Billabong Ltd shares in 2014 REQUIRED: Calculate Sophie's total net capital gain for inclusion in her 2020 income tax return using the CGT discount method Please show all workings. Please show each cost item separately in your cost base calculations. Please note that marks will be deducted if students include extra items in the cost base that should not in fact be included. There is no need to quote sections of the ITAA (1936) or ITAA (1997) in your answer. (8 marks TTT Arial 3 [12pt) T- E.E. earch O w W Question 2 e document will QUESTION 2 points QUESTION 1 (Continued) PART B: On 16 August 1996, Sophie signed a contract to purchase a rental property in Greenslopes for $520,000. Sophie borrowed 5380,000 to fund the purchase of the property from NAB Bank and contributed the remairting $140,000 funds from her own savings. Sophie incurred the following costs on 15 September 1996 (being the date of settiement) property stamp duty on acquisition legal fees on acquisition of property NAB loan application fees floan period is 20 years) 112280 920 1.590 Tenants were already occupying the rental property when Sophie purchased the property and the property continued to be income producing during the entire period of ownership Sophie provides you with a list of renovations that she has made to the property since she purchased the property 1. In August 2002, Sophie renovated the kitchen at a cost of $28,000, 2. In June 2016, Sophie purchased a refrigerator, washing machine, and dryer for the tenant at a cost of $8,400 On 9 March 2020, Sophie sells her Greenslopes rental property under a contract of sale for $880,000. Sales commission came to $27,340. For the entire ownership period, Sophie has also claimed capital works allowance deductions totalling 535,900 pursuant to Division 43 of the ITAA (1997), Sophie has also incurred the following expenses in relation to the Greenslopes rental property over the period of ownership: $ and Submit to sow and submit. Click Save All Answers to save all answers Question Completion Status: TITZUZU, supereerpes rencar property under contracerse CONSTITUTE For the entire ownership period, Sophie has also claimed capital works allowance deductions totalling $35,900 pursuant to Division 43 of the ITAA (1997) Sophie has also incurred the following expenses in relation to the Greenslopes rental property over the period of ownership $ Interest expense on loan landlord insurance minor deductible repairs and maintenance depreciation on items in the rental property council rates and water charges 97,700 12,140 5,030 23.400 19,450 Lastly, Sophie informs you that she has carry-forward capital losses of $20,660 relating to the sale of some Billabong Ltd shares in 2014 REQUIRED: Calculate Sophie's total net capital gain for inclusion in her 2020 income tax return using the CGT discount method Please show all workings. Please show each cost item separately in your cost base calculations. Please note that marks will be deducted if students include extra items in the cost base that should not in fact be included. There is no need to quote sections of the ITAA (1936) or ITAA (1997) in your answer. (8 marks TTT Arial 3 [12pt) T- E.E. earch O w W