Question 1:

Harry, a resident Australian taxpayer, acquired the following assets on the following dates:

Transaction	Asset	Purchase Date	Purchase Price
(i)	Mazda 626 sportscar	17 March 2016	$37,500
(ii)	1,000 Rio Tinto Ltd shares @ $18.50 each	21 January 2001	$18,500
(iii)	2,000 Flight Centre Ltd shares @ $33.20 each	5 May 2020	$66,400

Needing to pay for his wedding, Harry sells the following assets on 20 April 2021:

Transaction	Asset	Sale Date	Sale Proceeds
(i)	Mazda 626 sportscar	20 April 2021	$18,300
(ii)	1,000 Rio Tinto Ltd shares @ $38.50 each	20 April 2021	$38,500
(iii)	2,000 Flight Centre Ltd shares @ $36.70 each	20 April 2021	$73,400

Assume that Harry wishes to minimise his taxable income.

Required:

1. Calculate Harry's gross capital gain or loss in respect of the sale of each of the abovementioned assets.

2. Harry now advises you that he also sold some shares last year and made a capital loss of $5,000 on that sale and that there were no other capital assets were sold last year. Can this capital loss from last year be used to offset the capital gains that Harry has made this year? Calculate Harry's overall net capital gain which needs to be included at Item 18 of his income tax return as part of his assessable Income.

(c) Assume that Harrys carry-forward loss is now $15,000. How does this $15,000 loss get allocated against this years capital gain? Calculate Harry's overall net capital gain which needs to be included in his tax return for the current income tax year.