QUESTION 1

Benjamin Franklin bought a block of land on the 1st of March 1997 for $23,000 and sold it on the 1st of February 2022 for $15,000. On the 1st of June 2022, he sold shares for $12,000 which he had bought on 1st October 1997 for $9,000. Benjamin also sold a rental property for $325,000 on the 30th of June 2022. He had purchased the property on 1st of July 1992. It had cost $250,000 and he had paid stamp duty of $7,680 two months later. Benjamin had borrowed money to buy the property and had also paid stamp duty of $600 in respect of the loan. Two months after buying the property Benjamin had to repair three windows at a cost of $1,000. The windows had been damaged when he bought the property but Benjamin had been unable to get a workman to the house before that time. Two years later Benjamin had repaired the roof at a cost of $3,400 after it had been damaged in a storm. The property had been rented out for the entire period of Benjamins ownership and he had paid interest at $3,000 per year and rates and taxes of $2,000 a year for each year of ownership. In each year Benjamin's other income was $20,000 dividend franked to 100% and rent of $13,000. The dividends had franking credits of $8,571 attached to them. REQUIRED Calculate Benjamins net tax payable including Medicare levy for the year ended 30 June 2022. In answering this question, you must clearly outline the tax implications of each of the relevant transactions given in the question. You must also refer to the appropriate case law and/ or legislation in answering your question. You must also show all relevant calculations.