Question
Over the course of her working life, Samantha, an Australian resident, has travelled extensively and had acquired the following collectibles on such travels on the
Over the course of her working life, Samantha, an Australian resident, has travelled extensively and had acquired the following collectibles on such travels on the dates indicated: - 3 April 1988, a set of pearl earring for which she paid the equivalent of $16,000. - 28 July 1989, a Japanese samurai sword which cost $7,000. - 29 December 1995, a necklace and ring set made in the 14th century, costing $32,000. - 26 June 2004, an antique gold hairpin for $350. Samantha lives in the eastern suburbs of Sydney where she purchased her home for $2,600,000 on 25 June 1987. Over the years she has also purchased the following items: - 1 April 2005, a piano at the cost of $11,000 - 3 October 2007, a home theatre system at a cost of $26,000 - 28 March 2015, a BMW SUV car at a cost of $108,000. She also purchased a holiday home in Port Macquarie. Samantha purchased it on 28 June 2006 and paid the advertised cost of $750,000. Stamp duty and other purchase costs, including legal costs, totalled $40,000. Samantha took out an interest only loan on the property at a fixed rate on which she has been paying $36,000 per year in interest. Other costs relating to the property are $8,000 per year paid for rates and taxes and, in late June 2008, major repairs and extensions were undertaken at a cost of $80,000. This property has never been rented and Samantha used it as a holiday retreat for her family. As Samantha is retiring and moving to Bali, she sold all her non-real estate assets via an auction house on 28 June 2018 for the following amounts: - $30,000 for the set of pearl earring - $2,000 for the Japanese samurai sword - $80,000 for the necklace and ring set - $5,000 for the antique gold hairpin - $18,000 for the piano - $5,000 for the home stereo system - $70,000 for the BMW SUV car. She sold her home for $4,500,000 on 27 June 2018 incurring $30,000 in selling costs.
On 30 June 2018 she sold the holiday home for $3,500,000 and paid $4,500 in legal fees. Required: Calculate, where applicable, Samantha’s capital gain on the sale of each asset and Samantha’s total taxable capital gain (Show all workings for both indexing and discount method where applicable)
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Samanthas total taxable capital gain using the indexing method is as follows Set of pear...Get Instant Access to Expert-Tailored Solutions
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