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ACC3005 - Taxation law Assignment

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ACC3005 - Taxation law (ACC3005)

   

Added on  2019-11-08

ACC3005 - Taxation law Assignment

   

ACC3005 - Taxation law (ACC3005)

   Added on 2019-11-08

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Running head: TAX LAWTax LawName of the Student:Name of the University:Author’s Note:
ACC3005 - Taxation law Assignment_1
TAX LAW2Table of ContentsQuestion 1:.......................................................................................................................................31. The capital gain tax for the current year under normal circumstances:.......................................32. The change in capital gains tax if the land was purchased before 1984 October 20th:...............43a. Identifying the change in capital gains tax if the building was built on 20th May 2003:...........53b. Identifying the impact of if the building was built on 20th May 2017:......................................7Question 2:.......................................................................................................................................8Providing relevant position on the land pre-CGT asset for the income tax legislation:..................8References and Bibliography:........................................................................................................10
ACC3005 - Taxation law Assignment_2
TAX LAW3Question 1:1. The capital gain tax for the current year under normal circumstances: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 Under normal circumstances Rosemary has body land and build the building before theaugmentation of CGT. This mainly allows Rosemary to use both discounting and indexationmethod for driving the relevant capital gains tax for the property sold in current year. The firstmethod that could be used by Rosemary is the indexation method, which directly helps inidentifying the capital gains tax of an individual. The relevant information about the indexationmethod is provided under Income Tax Assessment Act 1997, Division 960-General, Subdivision960-M, and Section 960-2751. With the help of indexation method the capital gains tax came to$147,697.The second method is discounting method that may allow Rosemary as the property hasbeen held for more than 12 months, which are the essential criteria for discounting method to beimplemented by an indication.Therefore, Rosemary could use relevant discounting method toderive adequate capital gains tax which could be paid to Australian authority. Under the IncomeTax Assessment Act 1997, Division 115, Subdivision 115-A, and Section 115-15, it is clearly1"Legal Database."Ato.gov.au. N. p., 2017. Web. 9 Sept. 2017.
ACC3005 - Taxation law Assignment_3

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