Question
Batrisya helped Manisha clean up her old house before selling it. Manisha found an antique mirror that she had five years ago for $800. She
Batrisya helped Manisha clean up her old house before selling it. Manisha found an antique mirror that she had five years ago for $800. She offered to Batrisya as a thank you gift for the assistance. It is now worth $2,000. After Manisha had moved into her new house, Batrisya gift Manisha a piece of artwork valued at $600. Batrisya purchased the piece for $500. Once Manisha moved in, she set up a separate room to organize her organic goods and equipment.
Please write on advising Batrisya and Ryan regarding the issues arising from the above fact situation. Please use the Australian Taxation legislation. (ITAA) Please mentioned about:
- The gifting of the antiques from Manisha to Batrisya. Whether its ordinary income or not because there is a motive of the donor. The CGT on antiques. (350 words)
- The gifting of artwork as a thank you gift from Batrisya to Manisha. Determine whether is it ordinary income or not? explain why? The CGT on the artwork. (350 words)
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