Assignment
A man purchased a main residence in March 2012 consisting of 16 equal rooms at a cost of $400,000. Four rooms had been exclusively used to run her medical practise. Tanishka sold the property to another medical practitioner in January 2018. The sale price was $1,000,000. She also received an additional $50,000 from the purchaser for agreeing not to operate another medical practice within 5 kilometres of the property.
During the year ended 30 June 2018 Man also sold the following CGT assets
She sold the following shares. The details were as follow:
1000 Bamboozle Ltd shares
Date acquired: 1 July 2017 $20,000
Date sold: 23 May 2018 $37,000
1000 Skulduggery Ltd shares
Date acquired 17 May 2003 $141,000
Date sold 1 April 2018 $ 74,000
Rare manuscript
Date acquired 1 May 2002 $19,000
Date sold 12 September 2017 $11,000
Medical Trolleys which was a depreciable asset
Date acquired 13 September 2012 $6,000
Date sold 12 September 2017 $1,000
Required
(a) Identify the CGT assets and advise a man of the capital gains tax consequence in respect of the above CGT-assets (include calculations of gains or losses if any). Give reasons for your answers.
(b) Calculate the net capital gain / capital loss man made on disposal of the above CGT-assets
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.