PART C

On Friday, Ahmed sends you a final email with some points of clarification on Lisas circumstances previously determined.

From: Ahmed

Sent: Friday, 18 September 2020, 1:12PM

Subject: URGENT: Lisa Eastwood possible clarification

Hey!

Unfortunately, Lisa has just called. Her earlier details may be incorrect. Lisa will confirm on Monday the exact details; however, can you review the impact on her position if instead of renting the property for three years, it was rented for eight year.

Apologies for the short notice on this one.

Ahmed.

Senior Accountant

M&M Tax Accountants

Required: Re-examine your analysis in Part A and B and explain the impact of the change of circumstances. In doing so, you must present an accurate and complete analysis.

Please complete the following subset of FOUR questions to complete this part.

C.1 Re-assess the taxable capital gain (loss) on the sale of the home on the basis that Lisa rented the home for a period of eight years. Briefly justify your answer/show all workings. (4 Marks)

C.2 Re-calculate Lisas Net Capital Gain. Briefly justify your answer/show all workings. (2 Marks)

Hint: Copy, paste and edit your previously prepared response

C.3 Re-calculate Lisas Taxable Income. Show all workings. (1 Mark)

Hint: Copy, paste and edit your previously prepared outline.

C.4 Re-calculate Lisas Net Tax Payable. Show all workings. (3 Marks)