logo

Contracts of Maintenance

   

Added on  2019-09-25

11 Pages2619 Words137 Views
Running Head: TAXATION ASSIGNMENTHI6028 TAXATION ASSIGNMENT[Document subtitle]

TAXATION ASSIGNMENT1ContentsCase Study 1: Capital Gain Taxation...............................................................................................2Case Study 2: Fringe Benefits.........................................................................................................7REFERENCES..............................................................................................................................11

TAXATION ASSIGNMENT2Case Study 1: Capital Gain TaxationFACTS:Fred is an assessee of a resident.He has sold a home of Holiday. It means he has a residence where he actually resides.The holiday home is situated in the Blue Mountain.The agreement of sale occurred in the month of August of 2015.The consideration of actual sales was received in the month of February of 2016.The consideration of sales was $ 8, 00, 000.The cost which was occurred in order to sell the property of house was $1100 (the legal fee is comprehensive of the tax of goods and services).The purchase was done in the month of March of 1987.The cost of the property of house in order to purchase was $10000.The stamp duty which was paid on the purchase of the house property was $2000 (consideration is 2 %).The fees which were paid legally was $2000.Fred also has capital loss worth $10, 000.The loss of capital occurred because of the sale of shares.ASSUMPTIONS:The property of the house is situated within the authorities of taxation.According to revenue authorities, the year of assessment begins from July 1 and ends June 30.An assessee lives in his residence which is unlike the Holiday home.

TAXATION ASSIGNMENT3An assessee has not invested further from the consideration of sale in order to save the tax.ANSWERTaxation point, August 2015. According to the Income Tax Assessment Act 1937, the taxation point in the case of selling the properties of real estate unlike the ones who held it in order to use it personally during the time of registration of the contract agreement with the local authorities.It becomes difficult for the Fred in order to find the taxation point of an event of Capital Gain Taxation. It has some implications in order to calculate the tax liability.In the given case, the contract agreement for the sale of the property was registered in the month of August of 2015. Therefore, the liability of capital gain taxation begins from the year of assessment i.e. 2016-17 which means the financial year 2015-16. The liabilities have to be paid in the particular year when the settlement takes place. In the given case, the settlement was done in the month of February of 2016. The capital gain tax payment will be paid in the assessment year 2016-17.The property of the house which is taxable is owned for the time period of more than 12 months. There are two methods which can be used in order to compute the capital gain taxation i.e. the method of discount and indexation (Harding, M. 2013). Further, the table shows the computation by using both the methods:DISCOUNT METHODConsideration of sale800000Less cost incurred Legal expenses(1100)Commission of the agent(9900)Net sales (A)789000Cost base

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Taxation Assignment: Capital Gain Taxation and Fringe Benefits
|14
|2517
|193

Capital Gains Tax and Fringe Benefits Tax Case Study for Taxation Assignment
|12
|2466
|389

Taxation Liabilities: Capital Gains Tax and Capital Allowance
|14
|2777
|448

Capital Gains Tax and Depreciation of Assets under Income Tax Assessment Act, 1997
|9
|2781
|62

Case Study on Taxation Law Australia 2022
|10
|2771
|12

Taxation Law
|8
|1553
|85