Taxation Law and Management Assignment 2022

Running head: TAXATION LAW ASSIGNMENT
Taxation Law Assignment
Name of the Student
Name of the University
Author Note

TAXATION LAW ASSIGNMENT1
Table of Contents
Answer to Question 1........................................................................................................2
Answer to Question 2........................................................................................................4
Issue...............................................................................................................................4
Law regarding the cost of the machine..........................................................................5
Law regarding the time of depreciation..........................................................................5
Application of the law to the situation.............................................................................6
Conclusion......................................................................................................................7
References.....................................................................................................................8

TAXATION LAW ASSIGNMENT2
Answer to Question 1
A. In the given situation, Jasmine is an Australian resident. She was born in the UK
and is now planning to sell off all her assets in Australia and go back and live in
the UK. One of the assets being sold by Jasmine is her home purchased in 1981.
This was worth $40000 then and is now worth $650000. This home was
Jasmine’s main residence ever since the purchase of the house. The guidelines
of Income Tax Assessment Act 1997 suggest that the ‘main residence’ of a
person is commonly not charged under capital gains tax. In order to avail the
exemption for the sale, the property needs to have someone living in it and it
should also be used for residential purposes. As the property of Jasmine was
only used for residential purposes and no other money making aspects, the
entire amount of $650000 is not charged under capital gains tax (Ato.gov.au
2019).
B. According to the ITAA 1997, a car or motorcycle is exempt from sale provided
that the vehicle was designed in a manner that it could not carry more than one
tonne and was used to carry not more than 9 passengers. In the given case, the
sale of car by Jasmine is not charged under the capital gains tax if it fulfils the
necessary criteria. In case Jasmine is able to prove the weight carrying capacity
of the car less than one tonne and the number of passengers that could travel in
it was less than 9, then the entire amount of $10000 is not charged under capital
gains tax (Ato.gov.au 2019).
C. With respect to the sale of a small business, there are four types of concessions
that are available to a person selling their business assets (Sadiq and Marsden