QUESTION 2

This question consists of two parts, BOTH parts must be answered.

(a)Roger has sold his investment property for $700,000 and signed the contract of sale on 15^th May 2019. The sale has been finalized and he received the proceeds from the sale (settlement amount) on 15^th August 2019. He's seeking your advice whether he needs to include this in his 2019 tax return or whether this is to be included in the 2020 tax return. Briefly explain his position.

[3 marks]

(b)Are the following CGT assets, collectables or personal use assets:

i.A wedding ring which has been in the family for generations?

ii.A second-hand car purchased for $2,000?

iii.Shares in Commonwealth Bank?

iv.Your holiday house?

v.A printer in your accounting practice?

vi.Tools and equipment purchased for business use and previously claimed in the tax returns?

vii.A coin collection bought for $1,500 in 2016?