Question
Bala, an Australian resident for tax purposes, disposed of the following assets: a) Sold his car (acquired 8 April 2015 for $24,000) on 21 May
Bala, an Australian resident for tax purposes, disposed of the following assets:
a) Sold his car (acquired 8 April 2015 for $24,000) on 21 May 2020 for $12,000.
b) Sold an Ann Fung acrylic painting (acquired 8 April 2016 for $10,000) on 10 April 2020 for $5,000.
c) Sold his home (acquired 31 December 1984 for $30,000) on 6 June 2020 for $350,000.
d) Sold 2,000 XYZ Bank shares on 1 June 2020 for $100,000. The brokerage fee for the sale was $1,000. The shares were acquired on 2 Dec 1998 for $40,000 and the brokerage fee at the time was $400.
The above transactions are the only relevant transactions for the 2019/20 income year. Calculate Balas net capital gain or loss for the year ending 30 June 2020. Note: For the year ending 30 June 2019, Bala had a net capital loss of $3,000.
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