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Assignment on Taxation Theory, Practice and Law

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Added on  2020-04-01

Assignment on Taxation Theory, Practice and Law

   Added on 2020-04-01

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Running head: TAXATION LAWTaxation theory, practice and LawName of the UniversityName of the StudentAuthors Note
Assignment on Taxation Theory, Practice and Law_1
1TAXATION LAWTable of ContentsAnswer to question 1:.................................................................................................................2Answer to question 2:.................................................................................................................3Answer to question 3:.................................................................................................................4Answer to question 4:.................................................................................................................5Answer to question 5:.................................................................................................................5Reference List:...........................................................................................................................7
Assignment on Taxation Theory, Practice and Law_2
2TAXATION LAWAnswer to question 1:This particular question is regarding computation of net capital loss or net capital gainof Eric for a particular year. Section 108-20 of the ITAA 1997 describes the capital gain orloss determination from obtained from selling of assets. Laws that deal with determination ofnet loss and gains involve Section 108-10 of ITAA 1997 and Section 108-20 of the ITAA1997 (Brigham et al., 2015). Computation of net capital loss for the yearParticularsAmount ($)Loss on sale of Antique Chair2000Loss on sale of Painting 8000Less: Gain on sale of Antique Vase1000Total Collectable loss to be carried forward9000Asset DescriptionCost BaseCapital ProceedsCapital gainsCapial lossAntique Vase200030001000Antique Chair300010002000Painting 900010008000Home Sound System12000110001000Shares in listed company50002000015000Computation of Net capital gains for the year ParticularsAmount ($)Gains on sale of shares$15,000Selling of sound system has incurred a loss of $ 1000 that cannot be regarded forsetting of under section 108-20 of the ITAA 1997. Loss incurred from selling of shares hasresulted in collectible losses that should not be set off against gains attributable from sharesunder the same section. The disposal of ordinary shares in current year has resulted in currentprofit with no applicable deductions (Mumford, 2017). Therefore, the calculated capital gain
Assignment on Taxation Theory, Practice and Law_3

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