$20 Bonus + 25% OFF
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!
Add File

Error goes here

HI6028 Taxation Theory Practice And Law

tag 0 Download11 Pages / 2,542 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Questions:

1.You are working as a tax consultant in Mayfield, NSW. Your client is an investor and antique collector. You have ascertained that she is not carrying on a business. Your client provides the following information of sales of various assets during the current tax year:

(a) Block of vacant land. On 3 June of the current tax year your client signed a contract to sell a block of vacant land for $320,000. She acquired this land in January 2001 for $100,000 and incurred $20,000 in local council, water and sewerage rates and land taxes during her period of ownership of the land. The contract of sale stipulates that a deposit of $20,000 is payable to her when the contract of sale is signed and the balance is payable on 3 January of the next tax year, when the change of ownership will be registered.

(b) Antique bed. On 12 November of the current tax year your client had an antique four-poster Louis XIV bed stolen from her house. She recently had the bed valued for insurance purposes and the market value at 31 October of the current tax year was $25,000. She purchased the bed for $3,500 on 21 July 1986. Although the furniture was in very good condition, the bed needed alterations to allow for the installation of an innerspring mattress. These alterations significantly increased the value of the bed, and cost $1,500. She paid for the alterations on 29 October 1986. On 13 November of the current tax year she lodged a claim with her insurance company seeking to recover her loss. On 16 January of the current tax year her insurance company advised her that the antique bed had not been a specified item on her insurance policy. Therefore, the maximum amount she would be paid under her household contents policy was $11,000. This amount was paid to her on 21 January of the current tax year.

(c) Painting. Your client acquired a painting by a well-known Australian artist on 2 May 1985 for $2,000. The painting had significantly risen in value due to the death of the artist. She sold the painting for $125,000 at an art auction on 3 April of the current tax year.

(d) Shares. Your client has a substantial share portfolio which she has acquired over many years. She sold the following shares in the relevant year of income:

(i) 1,000 Common Bank Ltd shares acquired in 2001 for $15 per share and sold on 4 July of the current tax year for $47 per share. She incurred $550 in brokerage fees on the sale and $750 in stamp duty costs on purchase.

(ii) 2,500 shares in PHB Iron Ore Ltd. These shares were also acquired in 2001 for $12 per share and sold on 14 February of the current tax year for $25 per share. She incurred $1,000 in brokerage fees on the sale and $1,500 in stamp duty costs on purchase

(iii) 1,200 shares in Young Kids Learning Ltd. These shares were acquired in 2005 for $5 per share and sold on 14 February of the current tax year for $0.50 per share. She incurred $100 in brokerage fees on the sale and $500 in stamp duty costs on purchase.

(iv) 10,000 shares in Share Build Ltd. These shares were acquired on 5 July of the current tax year for $1 per share and sold on 22 January of the current tax year for $2.50 per share. She incurred $900 in brokerage fees on the sale and $1,100 in stamp duty costs on purchase.

(e) Violin. Your client also has an interest in collecting musical instruments. She plays the violin very well and has several violins in her collection, all of which she plays on a regular basis. On 1 May of the current tax year she sold one of these violins for $12,000 to neighbor who is in the Queensland Symphony Orchestra. The violin cost her $5,500 when she acquired it on 1 June 1999.

Your client also has a total of $8,500 in capital losses carried forward from the previous tax year, $1,500 of which are attributable to a loss on the sale of a piece of sculpture which she sold in April of the previous year.

Required:

Based on this information, determine your client’s net capital gain or net capital loss for theyear ended 30 June of the current tax year.

2.Rapid-Heat Pty Ltd (Rapid-Heat) is an Electric Heaters manufacturer which sells Electric Heaters directly to the public. On 1 May 2017, Rapid-Heat provided one of its employees; Jasmine, with a car as Jasmine does a lot of travelling for work purposes. However, Jasmine's usage of the car is not restricted to work only. Rapid-Heat purchased the car on that date for $33,000 (including GST). For the period 1 May 2017 to 31 March 2018, Jasmine travelled 10,000 km in the car and incurred expenses of $550 (including GST) on minor repairs that have been reimbursed by Rapid-Heat. The car was not used for 10 days when Jasmine was interstate and the car was parked at the airport and for another five days when the car was scheduled for annual repairs.

On 1 September 2017, Rapid-Heat provided Jasmine with a loan of $500,000 at an interest rate of 4.25%. Jasmine used $450,000 of the loan to purchase a holiday home and lent the remaining $50,000 to her husband (interest free) to purchase shares in Telstra. Interest on a loan to purchase private assets is not deductible while interest on a loan to purchase income-producing assets is deductible.

During the year, Jasmine purchased an Electric Heaters manufactured by Rapid-Heat for $1,300. The Electric Heaters only cost Rapid-Heat $700 to manufacture and is sold to the general public for $2,600.

Required:

(a) Advise Rapid-Heat of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2018. You may assume that Rapid-Heat would be entitled to input tax credits in relation to any GSTinclusive acquisitions.

(b) How would your answer to (a) differ if Jasmine used the $50,000 to purchase the shares herself, instead of lending it to her husband?

Download Sample Now

Earn back the money you have spent on the downloaded sample by uploading a unique assignment/study material/research material you have. After we assess the authenticity of the uploaded content, you will get 100% money back in your wallet within 7 days.

Upload
Unique Document

Document
Under Evaluation

Get Money
into Your Wallet

Total 11 pages, 1 USD Per Page

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2021). Taxation Theory Practice And Law. Retrieved from https://myassignmenthelp.com/free-samples/hi6028-taxation-theory-practice-and-law/capital-gain-of-client.html.

My Assignment Help (2021) Taxation Theory Practice And Law [Online]. Available from: https://myassignmenthelp.com/free-samples/hi6028-taxation-theory-practice-and-law/capital-gain-of-client.html
[Accessed 14 April 2021].

My Assignment Help. 'Taxation Theory Practice And Law' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/hi6028-taxation-theory-practice-and-law/capital-gain-of-client.html> accessed 14 April 2021.

My Assignment Help. Taxation Theory Practice And Law [Internet]. My Assignment Help. 2021 [cited 14 April 2021]. Available from: https://myassignmenthelp.com/free-samples/hi6028-taxation-theory-practice-and-law/capital-gain-of-client.html.


Confused with the research paper outline but have an approaching submission? Quit taking unnecessary stress as experts at MyAssignmenthelp.com are available to help you out with the tasks. The experts are adept at producing 100% genuine content with accurate formatting and referencing styles. They aid you in selecting attractive research paper topics to help you secure good grades. If you are facing confusion on how to start a research paper, place your request at MyAssignmenthelp.com to get on-time delivery at the most economical prices. If you are unaware of how to cite a research paper, the experts will provide it for you as well.

Latest Samples

RELIG 1100 Religious Studies

Download : 0 | Pages : 8

Answer Introduction Theologians, historians, philosophers along with common men have long been pondering on the identity of Jesus along with his attributes and purpose. According to Bockmuehl, Jesus posed questions to his disciples who people of His day perceived he was and further offered explanations ranging from John, the Baptist to one of the prophets of historic times. Several common men perceived Jesus as the son of living God which exh...

Read More arrow Tags: United States Florida Management University of Florida 

MKTG7035 Global Marketing

Download : 0 | Pages : 13

Answer:  Introduction:  This report introduces the background information necessary to understand the product and the UK country. It also presents the economic and financial environment analysis that would influence the market entry in UK country. It also discusses the political and legal environment of UK. Furthermore, it demonstrates the social and cultural environment of the UK nation. This report explains the technological ...

Read More arrow

HOS3100 Hospitality And Tourism Management

Download : 0 | Pages : 5

Answer Event Brief Analysis In the recent scenario, the people of metro cities have faced more pressure from their work as well as life. They lack in their time as well as energy to get healthy nutrition and take steps towards the physical activities which greatly affect the health of the individuals (Seys et. al., 2013). Perth is one of the biggest cities which are facing such issues. The health of the individuals in Perth affects at a great...

Read More arrow

MGT200 Organisational Behavior

Download : 0 | Pages : 8

Answer Organizational Behaviour The essay is intending to provide an understanding of the applicability of organisational behaviour in the workplace through critical reading and writing, analysis as well as argumentation skills. The essay argument is ‘a servant leadership management style is the best approach for managing people in organisations’. Hence, a discussion about the pros and cons of this argument will be a major part of...

Read More arrow

UGB009 Business Management

Download : 0 | Pages : 13

Answer: Introduction In order to analyze the marketing strategies adopted by a firm, it is necessary to have an overall idea about the operational process and marketing approaches adopted by the management of such business. The given section briefly focuses on the evaluation of Amazon’s operational process in terms of its marketing initiatives through the SWOT framework. In addition, the brief corporate aims and objectives have also bee...

Read More arrow
Next

Save Time & improve Grade

Just share requirement and get customized Solution.

watch
question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

Add File

Error goes here

1,646,083

Orders

4.9/5

Overall Rating

5,121

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1896 Order Completed

95% Response Time

Herman Berens

MSc in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2279 Order Completed

97% Response Time

Zachary Perez

PhD in Computer Science and Information System

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2632 Order Completed

100% Response Time

Albert Ambrosio

MSc in Nursing

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1692 Order Completed

98% Response Time

Alfred Dodd

PhD in Computer and Information Science with specialization in Database

Wellington, New Zealand

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

HE DID AN AMAZING JOB, here\'s my teacher\'s feedback: Nice work on a tough assignment. You are able to define important economic terms and put them to use with the conflict at Lake Smiley. Nice work defending your position with evidence from the re...

flag

User Id: 662761 - 14 Apr 2021

Australia

student rating student rating student rating student rating student rating

This assignment was delivered before the anticipated due date and exceeded my exptations. Very well written Thank you so much!!

flag

User Id: 355350 - 14 Apr 2021

Australia

student rating student rating student rating student rating student rating

Thank you for an excellent assignment, it only needed minor adjustments. The reference sources was absolutely magnificently done.

flag

User Id: 615514 - 14 Apr 2021

Australia

student rating student rating student rating student rating student rating

they did a good job I got an 81 precent which I am happy just wished it could\'ve been higher

flag

User Id: 544968 - 14 Apr 2021

Australia

student rating student rating student rating student rating student rating

Order on the go!

Say hello to our new app

callback request mobile
Have any Query?