Question
This question is in relevant to TAXATION LAW Calculate Beaus net capital gain or loss for each of the below (calculate each separately assuming he
This question is in relevant to TAXATION LAW
Calculate Beaus net capital gain or loss for each of the below (calculate each separately assuming he has no other CGT events), Please show me all workings and citations. Thank you
a) In January 2007, Beau purchased a diamond ring for $300. He was hoping to restore the ring and sell it for a higher price, but he instead decided to sell it unrestored. Beau sold the ring to a friend for $500. The market value at the time of sale was $1,000 but he didnt want his friend to spend too much money.
b) On 1 March 2015 Beaus father passed away and left Beau a house. Beaus father had purchased the house on 15 August 1985 and never lived there. He purchased the property for $250,000 and spent $10,000 on a renovation in the same year. When Beaus father passed away the property had a market value of $600,000. Beau did not want to live in the property and he decided to sell it in February 2017 for $700,000.
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