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ACC3005 Taxation Law Assignment

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Australian Institute of Higher Education

   

Taxation Law Assignment (ACC3005 Taxation Law Assignment)

   

Added on  2020-02-19

ACC3005 Taxation Law Assignment

   

Australian Institute of Higher Education

   

Taxation Law Assignment (ACC3005 Taxation Law Assignment)

   Added on 2020-02-19

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Running head: AUSTRALIAN TAXATION LAWAustralian Taxation LawName of the Student:Name of the University:Author’s Note:
ACC3005 Taxation Law Assignment_1
AUSTRALIAN TAXATION LAW2Table of ContentsQuestion 1:.......................................................................................................................................31. Capital gain tax computation for the current year:......................................................................32. Mentioning the impact of the land was purchased before 1984 October 20th:...........................43a. Mentioning the impact if the building was built on 20th May 2003:..........................................53b. Mentioning the impact if the building was built on 20th May 2017:.........................................6Question 2:.......................................................................................................................................8The commissioner’s position in the income tax legislations for the land acquisition pre-CGTassets:...............................................................................................................................................8References and Bibliography:..........................................................................................................9
ACC3005 Taxation Law Assignment_2
AUSTRALIAN TAXATION LAW3Question 1:1. Capital gain tax computation for the current year:ParticularsDiscount MethodIndexation MethodProceeds from Sale$300,000 $300,000 Land cost$50,000 $51,422 Building cost$100,000 $100,881 Total Cost$150,000 $152,303 Capital Gains$150,000 $147,697 Less: 50% Discount$75,000 $0 Net Capital Gain$75,000 $147,697 The above table mainly states the relevant calculation of net capital gains with discountmethod and indexation method. Relevant vacant land was mainly purchased beefier 1997October 20th, while the construction of building was commenced on 1999 May 20th. Therefore, itcould be understood that both construction and purchase of the property was conducted before1985 September 20th. Under the discounted method, the overall discount of 50% is provided ifthe capital is held for more than 12 months (Russell 2016). In addition, Rosemary has held theproperty for more than 12 months, which enables her to get a 50% on the capital gains generatedfrom sale of the property. The discounting method is mainly listed under Income TaxAssessment Act 1997, Division 115, Subdivision 115-A, and Section 115-15, where relevantmeasures needs to be conducted by the individual in calculating the capital gain tax underdiscounted method (Ato.gov.au 2017). The second method that is used in the valuation of the capital gain tax is the indexationmethod, which could directly help in identifying the capital gain tax paid by the individuals. The
ACC3005 Taxation Law Assignment_3

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