QUESTION 1

How may a taxpayer lose eligibility for the main residence exemption?

1. ( a ) The taxpayer previously lived in the dwelling, but has rented it for the lastfive years
2. ( b ) The taxpayer owns more than one dwelling
3. ( c ) Taxpayer previously lived in the dwelling, has never rented it out,but left seven years ago
4. ( d ) The dwelling consists of a caravan on two hectares of private land
5. ( e ) None of the above

QUESTION 2

Which of the followings is not exempt from capital gains tax?

1. ( a ) A motor-cycle.
2. ( b ) Personal use assets acquired 1 July 2010 for $15,000.
3. ( c ) A coin acquired 1 September 2002 for $470 kept for personal enjoyment.
4. ( d ) A share investment acquired before 20 September 1985.
5. ( e ) All of the above are exempt

QUESTION 3

Which of the following capital losses may be offset against a capital gainon the disposal of land held as an investment?

1. ( a ) Capital loss on shares
2. ( b ) Capital loss on a boat
3. ( c ) Capital loss on taxpayer's main residence
4. ( d ) Capital loss on artworks
5. ( e ) None of the above

QUESTION 4

The Discount method would be used where:

1. ( a ) There is a purchase and sale within 12 months
2. ( b ) It provides a better outcome than the indexation method
3. ( c ) The main residence exemption is claimed
4. ( d ) A capital loss occurs
5. ( e ) None of the above

QUESTION 5

The fourth element of the cost base of a CGT asset would include:

1. ( a ) Stamp duty
2. ( b ) A deck built on a residential investment property
3. ( c ) Property market value
4. ( d ) Non-capital costs of owning an asset incurred after 21 August 1991
5. ( e ) None of the above

QUESTION 6

The second element of the cost base of a CGT asset would include:

1. ( a ) Non-capital costs of owning an asset incurred after 21 August 1991
2. ( b ) Property market value
3. ( c ) Stamp duty
4. ( d ) A deck built on a residential investment property
5. ( e ) None of the above

QUESTION 7

Which of the following is a requirement of a CGT event?

1. ( a ) A CGT asset is involved
2. ( b ) A net gain has been realised
3. ( c ) The event is a sale
4. ( d ) The event is a disposal
5. ( e ) None of the above

QUESTION 8

Which of the following equations is most likely to be correct?

1. ( a ) Net capital gain = current year gains + gains from previous years
2. ( b ) Net capital gain = current year gains - current year losses - lossesof previous years
3. ( c ) Net capital gain = current year gains - losses of previous years
4. ( d ) Net capital gain = current year gains - current year losses + losses ofprevious years
5. ( e ) Net capital gain = current year gain - discount on gain - current year losses

QUESTION 9

Which of the following assets would be classed as a personal use asset?

1. ( a ) A diamond wedding ring
2. ( b ) A beachside property used as a family holiday house
3. ( c ) A large screen television
4. ( d ) Trading stock taken from a business by the owner
5. ( e ) None of the above

QUESTION 10

How many elements of an asset's cost base are referred to in the capitalgains provisions?

1. ( a ) Three
2. ( b ) One
3. ( c ) Four
4. ( d ) Two
5. ( e ) None of the above