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On August 1st 1996, Bonny bought a second property at her favourite beach for $145,000. At the time of this purchase, she spent $300 on
On August 1st 1996, Bonny bought a second property at her favourite beach for $145,000. At the time of this purchase, she spent $300 on conveyancing fees and paid $2,300 on stamp duty. The property was never rented out. Over the years, Bonny also paid $4,325 on Council rates as well as $2,950 on various insurances. Answer the following questions. You must show and explain your calculations plus refer to the law. (a) What is the Cost Base of the property? (b) Would the Cost Base be different if the property was rented out? (c) If Bonny chose to sell the property today for a price of $500,000, calculate the Net Capital Gain or Loss using the CGT Discount Method
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