Question 4

Ali Baba advised that he disposed of the following items during 2018/19

Asset	Purchase $	Acquisition date	Disposal date	Sale $
Ishmir Ltd shares	$5,000	30/10/2005	01/08/2018	$27,000
Istanbul Ltd shares	$3,000	01/06/1986	01/08/2018	$3,200
Ankara Ltd shares	$15,000	10/11/2017	30/06/2019	$30,000
Gallipolli shares	$2,725	21/10/1980	4/04/2019	$22,725
Rare coins	$3,000	01/11/1996	01/07/2018	$2,750
Antique (150 years old)	$17,000	15/07/2012	15/05/2019	$20,000
Lexus (vehicle)	$180,000	01/10/2014	25/05/2019	$130,000
Jetski	$10,500	24/05/2014	31/03/2019	$14,000
Golf Set	$10,000	07/04/2014	15/12/2018	$4,000
Alis family home (note 1)	$290,000	15/08/1985	30/06/2019	$998,000
jewellery	$400	15/02/2016	30/05/2019	$750
Holiday home (note 2)	$480,000	17/03/2003	04/06/2019	$780,000

Note 1: Ali lived in the family home from the time of purchase until the day it was sold. During the purchase and sale, an additional $40,000 was incurred in relation to stamp duty, legal fees, building inspection reports and agents commission.

Note 2: In addition to the information above during the purchase and sale of the holiday home, an additional $35,500 was incurred in relation to stamp duty, legal fees, building inspection reports and agents commission. In May 2007 the holiday home was renovated and a new kitchen for $25,000 and a 2 car garage was added to the property at a cost of $120,000.

Note 3: Ali had carried forward capital losses of $8,000 ($5,000 from shares and $3,300 from sale of painting).

OTHER INFORMATION;

• Business income of $55,500
• Gross interest income of $10,000
• Dividend of $3,000 (franked @ 80%)
• Dividend of $5,000 (unfranked)

Required

Calculate net capital Gain/ Taxable Income