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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