Question 5 (7 marks)

Benjamin is an artist. He sold some assets last week. He requests you to calculate the Capital Gain Tax (CGT) consequences of the following transactions:

He purchased the following items last eight months ago.

• an antique ceramic bowl (for $4,000),
• An antique vase (for $5,000),
• A colourful painting (for $15,000),
• A TV sound system for his personal use (for $10,000) and
• Shares of a reputed Company (for $6,000)

Last week he sold these assets as follows:

• an antique ceramic bowl (for $6,000),
• An antique vase (for $1,000),
• A colourful painting (for $ 5,000),
• A TV sound system for his personal use (for $9,000) and
• Shares of a reputed Company (for $26,000)

Based on the legal provisions, discuss capital gain tax assets and calculate his net capital gain or net capital loss for the current tax year