Calculate freds net capital gain for the current year


Case study: Capital Gains Tax

Fred is a resident who signed a contract to sell his holiday home in the Blue Mountains in August last year. The sale was settled in February this year when Fred received $800,000 from the purchaser. Fred incurred legal fees of $1100 (Inclusive of GST) and real estate agent's commission of $9,900 (Inclusive of GST) in relation to the sale. Fred purchased the holiday home in March 1987 for $100,000 and paid $2,000in stamp duty on the transfer and $1000 in legal fees. In January 1990, Fred engaged a builder to build a garage on the property for $20,000.

Calculate Fred's net capital gain for the current year. Assume he also has a net capital loss from last year of $10,000 arising from the sale of shares.

Would your answer be different if the loss arose from the sale of an antique vase?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Calculate freds net capital gain for the current year
Reference No:- TGS01622097

Expected delivery within 24 Hours