Questions 1 - 6 Instructions: With reference to each of the situations below, outline the Capital Gains Tax consequences of the transactions. Refer to legislation, case law and/or principles of tax law in your response. 1. Marianne purchased an asset on 1 June 2008 for $50,000 and on 29 June 2018 the asset is destroyed by re. What are the capital gains tax consequences of the re in relation to the asset that was destroyed? (5 marks) 2. On 1 June 2018 Jane grants Ashleigh the option to purchase her beach house in Byron Bay. Ashleigh pays $2,000 for the option. Explain the specic capital gains tax event that relates to the above situation. (5 marks) 3. Paula owns a boat that her neighbour, Ethan, is interested in buying but Ethan wants to try out the boat rst. Paula agrees to hire the boat to Ethan and the agreement provides that Ethan will buy the boat at the end of three years unless Ethan decides to buy the boat sooner. Outline the capital gains tax consequences of this agreement. (5 marks) 4. Steven purchased a property on 1 July 2012 in Sydney. He immediately moved in and established it as his main residence. He moved abroad for 2 years on a work contract on 30 June 2014. The property was rented out from 1 July 2014 to 30 June 2016. When his contract was nished Steven moved back into his house in Sydney. Explain how the main residence exemption applies to this situation. (5 marks) 5. What are the capital proceeds for capital gains tax purposes if Mary-Anne were to gi an apartment with a market value of $285,000 to Michael. (5 marks) 6. Jordan is a boat builder and owns his own business, building exclusive yachts. He is building himself a yacht and took some building materials costing $5,000 for his own use. The materials could have been sold for $6,250. State what amount, if any, is assessable in respect of the above. (5 marks) 7. Question 7 Roger is an unmarried Australian resident entrepreneur with a number of different sources of income. He is concerned how much tax he may have to pay and has come to you to calculate how much you estimate he will have to pay this year. He presents you with the following information: Salary from working part time at the Sydney Apple store $20,000 Rent from an investment property he purchased last year $35,000 Profit on the sale of BHP shares of $4,000 Tax agent's fees of $2,200 Rates and expenses on his investment property $12,000 Roger had private health insurance for the complete year and received the tax offset in the form of reduced premiums