Question
Question 3 On 12 June 2018, George Bennet, a resident taxpayer sold land and buildings for $1,650,000. George originally bought a block of land for
Question 3
On 12 June 2018, George Bennet, a resident taxpayer sold land and buildings for $1,650,000.
George originally bought a block of land for $420,000 on 16 November 2004.
George constructed two dwellings on the property, one his main residence and the other an investment property, which he has been receiving rental income.
George constructed both properties during the 2009/2010 financial year. His main residence was constructed for $480,000 and the investment property was constructed for $380,000.
Each of these buildings was sold with half of the original block, with the sale value of each property being $950,000 for the main residence and $700,000 for the investment property.
Calculate the capital gain for the 2017/2018 year and explain the tax treatment of both properties.
calculation only no need for inflation rate
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