Question
Sale of vacant land on 28 May 2018 290,000 The land had been bought on 28 October 1984 at a cost of $95,000. Stamp duty
- Sale of vacant land on 28 May 2018 290,000
The land had been bought on 28 October 1984 at a cost of $95,000. Stamp duty of $2,358 was paid at purchase. Rates and taxes of $15000 were paid during ownership. He paid $10,000 to the agent for the sale of the land and $1299 in settlement fees, these were both paid on 28 May 2018. The land had been bought by Jimmy with the intention of building a factory for his business.
Question: Was there an intention for profit. If there is, will there be a CGT(Capital gain tax), since prior 1985, there is no CGT?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
