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AUSTRALIA Taxation Law 2 Running Head: AUSTRALIA Taxation Law 1

   

Added on  2020-04-01

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Running Head: AUSTRALIA TAXATION LAW 1Australia Taxation Law<Student ID><Student Name><University Name>

AUSTRALIA TAXATION LAW 2ContentsQuestion 1..................................................................................................................................3Introduction............................................................................................................................3Critical analysis......................................................................................................................3Supporting evidence...............................................................................................................3Conclusion..............................................................................................................................4Question 2..................................................................................................................................4Introduction............................................................................................................................4Critical analysis......................................................................................................................4Supporting evidence...............................................................................................................5Conclusion..............................................................................................................................5Question 3..................................................................................................................................5Introduction:...........................................................................................................................5Critical analysis:.....................................................................................................................6Supporting evidence...............................................................................................................6Conclusion..............................................................................................................................6Question 4..................................................................................................................................6Question 5..................................................................................................................................7References..................................................................................................................................7

AUSTRALIA TAXATION LAW 3Question 1IntroductionThe observation of the case of Eric depicts that he has acquired certain resources in thecourse of the recent year. The concerns of taxability on capital gains can be applied in thiscase on the basis of the offering cost of the asset being greater than the procurement cost. Thecritical condition that can be apprehended in the case of Eric is that he is not liable to obtainindexation benefits owing to the duration of holding the assets for less than a year.Critical analysisThe resources purchased for individual utilization could be implicative of fulfilling thepersonal objectives or recreation. The resources acquired for personal utilization do notcomprise of collectibles. It is mandatory to note that the assets which were procured at costsunder$10000 could be exempted from the capital gains tax (Boyle, 2015). In the case of Eric,the resources procured for personal utilization refer to the incorporation of offers of a listedcompany which are procured at $5000 and a home sound system which has a procurementcost of $12000 (Wilson-Rogers, Morgan & Pinto, 2014).Collectibles or individual resources are procured by individuals for accomplishing additionaltargets including realization of self-efficacies. The concerns of applying capital gains tax tothe profits on sale of collectibles have to be addressed in case of Eric. Collectibles which arepurchased at costs lesser than or equivalent to $500 are exempted from the precedents ofcapital gains tax. The collectibles which are acquired by Eric refer to an antique vase, apainting and an antique chair at the procurement costs of $2000, $9000 and $3000respectively (Wilson-Rogers, Morgan & Pinto, 2014). Supporting evidenceThe data related to procurement costs of the personal assets and collectibles could be helpfulfor determining the capital profits on the assets held for less than a year by Eric.ResourcesCost Base ofResourcesCapital Proceeds ofResourcesNet Capital Loss/(Net Capital Gain)in $Antique Vase 2,0003000Gain of 1000Antique Chair 3,0001000Loss of 2000Painting 9,0001000Loss of 8000

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