Question:Charles Harley seeks your advice for the 2015/16 income year with respect to the income tax implications of his transactions as given below:

Transaction Purchase Cost$ Date of Purchase Date of Sale Consideration$

Shares in Rio Tinto 6,000 20 Sept 84 11 July 15 19,500

Investment Property 110,000 1 April 03 31 Dec 15 320,000

Family residence 195,200 3 June 94 12 Aug 15 650,200

Shares in Telstra 6,300 17 Nov 96 17 Nov 15 5,050

A very Old Painting 13,100 3 March 91 13 April 16 14,350

Stereo System 7,000 8 May 97 16 June 16 3,000

Jewellery 7,850 23 April 82 22 April 16 6,300

Antique clock 13,250 30 May 95 9 May 16 18,250

Piano 23,100 12 June 99 12 June 16 24,300

Capital loss of $550 on Collectables was carried forward from previous years.

Assessment task

1. Determine the minimum amount of capital gains that Charles can include as assessable income in his 2015/16 income tax return(Hint: Calculate the net capital gain OR loss for the year using the CGT discount and indexation methods whichever method gives the better result).
2. Specify any losses that Charles can carry forward to future years.

Include your workings in your answer