Question
Determine the capital gain tax consequences of selling shares for an Australian resident individual and complete the relevant income tax return item. Use a spreadsheet
Determine the capital gain tax consequences of selling shares for an Australian resident individual and complete the relevant income tax return item. Use a spreadsheet or word-processing program to type up your response. The Data is below:
Ben Lewis, an Australian resident taxpayer, sold shares in his investment portfolio on 25 March 2022.
The acquisition dates, costs and sale proceeds are shown in the table below.
#1
Company - Argon Ltd
Acquisition date - 15/03/2016
No. Shares - 725
Cost - $5,984
Capital proceeds - $5,362
#2
Company - Carbon Ltd
Acquisition date - 10/02/1988
No. Shares - 354
Cost - $9,000
Capital proceeds - $13,240
#3
Company - Neon Ltd
Acquisition date - 04/05/2021
No. Shares - 428
Cost - $8,790
Capital proceeds - $9,384
#4
Company - Krypton Ltd
Acquisition date - 05/11/2008
No. Shares - 236
Cost - $2,814
Capital proceeds - $3,913
#5
Company - Silicon Ltd
Acquisition date - 13/09/1985
No. Shares - 292
Cost - $1,200
Capital proceeds - $2,298
The costs include brokerage fees and any applicable stamp duty. There were no brokerage fees on sale.
Ben has the following unapplied net capital losses from the 2020/21 income year:
$222 arising from the sale of a collectable
$544 arising from the sale of shares
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
11th Edition
111856667X, 978-1118566671
