HI6028 Taxation Theory, Practice & Law Individual Assignment

Added on - 30 Oct 2019

  • HI6028

    Course

  • 14

    Pages

  • 2884

    Words

  • 128

    Views

  • 0

    Downloads

Trusted by +2 million users,
1000+ happy students everyday
Showing pages 1 to 4 of 14 pages
HI6028 Taxation Theory, Practice &LawT2 2017 Individual Assignment
TABLE OF CONTENTSQuestion 1..................................................................................................................................4Issue........................................................................................................................................4Regulations.............................................................................................................................4Application of legal provisions..............................................................................................4Conclusion..............................................................................................................................5References..............................................................................................................................5Question 2..................................................................................................................................7Issue........................................................................................................................................7Regulations.............................................................................................................................7Application of legal provisions..............................................................................................7Conclusion..............................................................................................................................8References..............................................................................................................................8Question 3..................................................................................................................................9Issue........................................................................................................................................9Regulations.............................................................................................................................9Application of legal provisions............................................................................................10Conclusion............................................................................................................................10References............................................................................................................................10Question 4................................................................................................................................12Description of issues............................................................................................................12Legal provisions...................................................................................................................12Application of described provisions.....................................................................................12Conclusion............................................................................................................................12References............................................................................................................................13
Question 5................................................................................................................................14Issue......................................................................................................................................14Regulations...........................................................................................................................14Application of legal provisions............................................................................................15Conclusion............................................................................................................................15Reference..............................................................................................................................15
QUESTION 1IssueIn accordance with the given case situation, Eric had acquired and sold following assets at thecited price in previous twelve months:AssetsPurchase costSales priceAntique vase$2,000$3,000Antique chair$3,000$1,000Painting$9,000$1,000Home sound system$12,000$11,000Shares in a listed company$5,000$20,000This cited case deals with the computation of capital gain or loss for Eric by considering hiscapital transactions.RegulationsIn accordance with the Australian taxation provisions; holding period is most crucial todetermine taxability of capital gain or loss transaction (Working out your capital gain, 2017).As per these provisions; if holding period of asset is more than 12 months then method ofindexation or discounting is applied but if holding period of asset is less than 12 months thenother method is applied (Harding, 2013). This is the simplest method in which taxableamount is computed by reducing purchase price from sales price. Further; loss of onetransaction is compensated from other transaction.Application of legal provisionsAs per the described case scenario; Eric had acquired and sold assets at the cited price inprevious twelve months thus holding period of each asset is less than twelve months due towhich other method will be applicable for computation of capital gain tax (Working out yourcapital gain, 2017). By applying provisions of this method; taxable amount for Eric is asfollows:ParticularsAmountCapital gainShares in a listed company$15000Antique vase$1,000
desklib-logo
You’re reading a preview
Preview Documents

To View Complete Document

Click the button to download
Subscribe to our plans

Download This Document