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Question 11.8 Scott is an accountant who purchased a vacant block of land in Brisbane on 1 October 1980. On 1 September 1986, Scott built
Question 11.8
Scott is an accountant who purchased a vacant block of land in Brisbane on 1 October 1980. On 1 September 1986, Scott built a house on the land. At the time, the land was valued at $90,000 and the cost of construction was $60,000. The property has been rented out since construction was completed. On 1 March of the current tax year, Scott sold the property at auction for $800,000.
- (a) Based on the information above, determine Scotts net capital gain or net capital loss for the year ended 30 June of the current tax year.
- (b) How would your answer to (a) differ if Scott sold the property to his daughter for $200,000?
- (c) How would your answer to (a) differ if the owner of the property was a company instead of an individual?
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