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The CGT event as per section 100-20 of the ITAA 97 are:
The cost related to disposal and acquisition of assets are included within the cost base as per section 110-25 (3) of the ITAA97.
The cost related renovation should be added back with the cost of property as per section 110-25(4) of ITAA 97.
The calculation of capital gain is performed in accordance with the section 100-45 of the ITAA 97.
|
Statement showing calculation of Capital gain |
||
|
Particulars |
Amount |
Amount |
|
Real estate property |
$950,000.00 |
|
|
legal fees |
$4,500.00 |
|
|
real estate agent commission |
$45,000.00 |
|
|
Selling and distribution |
$2,500.00 |
|
|
Net capital proceeds |
|
$898,000.00 |
|
|
|
|
|
Cost of the property |
$350,000.00 |
|
|
legal fees |
$1,500.00 |
|
|
Stamp duty |
$9,500.00 |
|
|
cost of renovation |
$250,000.00 |
|
|
Cost base |
|
$611,000.00 |
|
Gross capital gain |
|
$287,000.00 |
|
Less: |
|
|
|
Discount @ 50% |
|
143500.00 |
|
Net capital gain |
|
$143,500.00 |
|
|
|
|
|
Loss on sales of investment property |
|
$180,000.00 |
|
Capital gain on sales of shares |
|
$225,000.00 |
|
|
|
|
|
Total Net capital gain |
|
$188,500.00 |
Answer to Question 2 a)
The salary paid to the partner are not considered as actual expenses and are not deducted in determining the net income of the partnership as per the taxation Ruling 2005/7 under para 7.
|
Calculation of Net Income |
|
|
Particular |
Amount |
|
Profit of partnership |
$325,000.00 |
|
Wages of partner |
$150,000.00 |
|
Net Income |
$475,000.00 |
The partner’s income include profit from partnership based up on their agreed proportion as per section 92(1) of the income tax assessment act 1936.
|
Net income allocation to each partner |
|
|
Particulars |
Amount |
|
Net Income |
$475,000.00 |
|
share proportion |
50% |
|
Net income allocated to partner |
$237,500.00 |
The beneficiaries are taxable on the income distributed by the as per section 97-1 of the Income Tax Assessment Act 1997. The trust income is included in the assessable income and tax is paid based on the normal tax rate that are applicable.
|
Calculation of dividend |
|
|
Particulars |
Amount |
|
Dividend received |
$135,000.00 |
|
Gross dividend |
$190,812.72 |
|
Section of dividend taxed |
$55,812.72 |
|
Calculation of Tax payable |
|
|
Particular |
Amount |
|
Net Income from partnership |
$237,500.00 |
|
Dividend Income |
$135,000.00 |
|
Total Assessable income |
$372,500.00 |
|
|
|
|
Tax payable |
$140,857.00 |
|
Franking credit |
$55,812.72 |
|
Net Tax payable |
$85,044.28 |
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