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Assignment Income Tax Assessment Act 1997

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Added on  2020-04-01

Assignment Income Tax Assessment Act 1997

   Added on 2020-04-01

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Running head: TAXATIONTAXATIONName of the StudentName of the UniversityAuthors Note
Assignment Income Tax Assessment Act 1997_1
1TAXATIONAnswer 1IssueThe problem given in this case mainly deals with the computation of capital profit as wellas losses that is attained from sale of the assets that is described under the section 108-20 of theITAA 1997.Lawa)Section 108-20 of the ITAA 1997b)Section 108-10 of the ITAA 1997Asset DescriptionCost BaseCapital ProceedsCapital gainCapital lossAntique Base200030001000Antique Chair300010002000Painting900010008000Home Sound System12000110001000Shares in listed company50002000015000Estimation of net capital loss for the given yearParticularsTotal Amount ($)Loss on the sale of Anitque Chair2000Loss on the sale of Painting8000Less: Profit on sale of Antique Vase1000Total Loss to be carried forward9000Estimation of net capital gain for the given yearParticularsTotal Amount ($)Profit obtained from sale of shares$15,000
Assignment Income Tax Assessment Act 1997_2
2TAXATIONApplication of laws:Under the section 108-20 of ITAA 1997, total loss of $1000 attained from selling ofhome sound system is not allowed for the given set off because no losses are considered on thebasis of disposal of assets (Schreiber 2013). According to this section, the loss acquired by Ericcannot be kept off as against the profit in terms of sale of shares. In addition, Eric has attainedcapital gain of $15000 in terms of removal of common assets and does not involve any commoncapital of the present year or any types of valid reductions. ConclusionTherefore, it concludes from the above fact that as Eric has attained profit from removalof common assets, he cannot counterbalance the loss obtained from the collectibles. Answer 2IssueThe problem that is given below is mainly apprehensive with the FBT ascertainment thatis related to the “Taxation Ruling of TRE 93/6”.Application of TaxEstimation of FBTTaxable value of the loan fringe benefitIn the books of Brian for the year ended 2016/17Estimation under statutory and actual rate of interest rateStatutory RateActual RateParticularsTotal Amount Total Amount ($)
Assignment Income Tax Assessment Act 1997_3

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