Question
Calculate net capital gains (losses) to be included in Madison Turner's tax return for the years ending 2019 and 2020. Madison Turner, an Australian resident,
Calculate net capital gains (losses) to be included in Madison Turner's tax return for the years ending 2019 and 2020.
Madison Turner, an Australian resident, seeks advice on the CGT consequences of the following events. She exchanged contracts for the acquisition of an investment property, at market value, on 30 January 1999, paying a 10% deposit of 60,000. Property settlement was deferred until 10 December 2001, when the balance of $540,000 was paid, title transferred, and her name was recorded as the registered proprietor. At the time of the settlement, the market value of the property was $800,000. She sold the property on 15 June 2019 for $1 million. She also bought 20,000 shares in BHP Billion in October 1985, paying $18.50 per share. She decided to sell her entire holding, for $40 per share, and signed a share transfer document and handed the transfer and share script to the Stock Exchange on 21 June 2019. The transfer was not registered with BHP Billiton until 10 July 2019. She also incurred a capital loss of $50,000 from another CGT event in 2019/2020. You have to include ALL available methods for calculating the net capital gains for the years ending 2019 and 2020.
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