Question
Question 1 (14 marks) As a resident, Zayn Papas signed a contract to sell his investment property in the Perry Beach in September 2020. On
Question 1 (14 marks) As a resident, Zayn Papas signed a contract to sell his investment property in the Perry Beach in September 2020. On March 2021, Zayn received $855,000 from the buyer when the sale was settled, also he acquired legal fees of $3,500 (inclusive of GST) and a real estate agents commission of $7,500 (inclusive of GST) in relation to the sale. Zayn bought the holiday home in April 1997 for $95,900 and paid $1,800 in stamp duty on the transfer and $1,200 in legal fees. In 2006, Zayn hired a builder to build a garage on the property for $19,000. Calculate Zayns net capital gain for the current year. Assume he also has a net capital loss from 2019 of $15,000 arising from the sale of shares. Required: Would your answer be different if the loss arose from the sale of an antique container?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started