Taxation Law Analysis: Antique Painting, Historical Structure, Jewellery Piece, and Picture

Running Head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note

2
TAXATION LAW
Table of Contents
Question 1........................................................................................................................................3
Part 1............................................................................................................................................3
Part 2............................................................................................................................................3
Part 3............................................................................................................................................4
Part 4............................................................................................................................................5
Question 2........................................................................................................................................6
Part 1............................................................................................................................................6
$13000..........................................................................................................................................6
$13400..........................................................................................................................................7
$4350............................................................................................................................................7
$3200............................................................................................................................................7
Part 2................................................................................................................................................8
Question 3........................................................................................................................................8
Application......................................................................................................................................9
Conclusion.....................................................................................................................................10

3
TAXATION LAW
Question 1
Part 1
This report undertakes analysis of the issue of the monetary benefit from the sales of the antique
painting by Helen.
This painting is a collectible item and the monetary asset gained from its sales, as for the section
108-10(2) ITAA97. According to the statement in the section 102.2 CGT, Assets or DISPOSAL
OF ASSETS can be considered to be a CGT event A1 according to the section 104-10(1). The
timing of the Asset acquisition is the moment when the TP will be considered to be the owner
according to the section 109-5(1).
It is unclear from the present facts when Helen will be acquiring the painting. The reason is that
his father purchased it. In case if the purchase of the painting was done before 20th September of
1985 it will be exempted from CGT as it will be considered as a pre CGT asset. In case if the
acquisition is made after that date then it will be deemed as a collectible asset. As per the
element one of the section 110-25(2), the cost basis will be e the price of acquisition which is is
4000 US dollars. Nevertheless, as it might have been acquired by her by means of death or
through gift, the cost basis will undergo modification according to the market value of the time
when it was acquired on the basis of 112-20. According to the section 116.20, the seal price of
12000 US dollars will be considered as the capital proceeds in this case. The calculation of the
CG will be done by the deduction of cost base from the capital proceeds. If the asset is held by
him for over and here, she will be benefited with 50% discount for the same according to the
layout of the division 115.
Part 2

4
TAXATION LAW
In this context the issue is determination of CGT consequences from the sales of historical
structure by Helen.
This structure which was sold by Helen can be considered as a collectible as well as capital gain
asset according to the provisions of the section 108-10(2) ITAA97. It has been stated in the
section 102.2, that CGT will be applicable in case there is any CGT event as per the table
provided according to section 104.5. According to the section 104-5, the CGT event A1 will
consider the sale of any CGT asset or their disposal (Barkoczy 2016). The timing of the Asset
acquisition is the moment when the TP will be considered to be the owner according to the
section 109-5(1).
In this context, the acquisition timing is is the month of December of 1993 which makes the
historical structure an asset of post CGT period and the It has been stated in the section 102.2,
that CGT WILL BE APPLICABLE IN CASE there is any CGT event as per the table provided
according to section 104.5. The cost base in case of this acquisition, as considered by section
110-25(2) element one will be held at acquisition price of 5500 US dollars. In this context, the
capital proceeds will be regarded as the sale price of 6000 US dollars according to the section
116. 20 (Sadiq et al. 2012). The calculation of the CG will be done by the deduction of cost base
from the capital proceeds.This implies that the overall capital benefit in this sales process for
Helen will be the sum obtained after deduction of 5500 from 6000. Therefore the total CG is
calculated at $500. Therefore Helen will be enabled to get a discount of 15% according to the
provisions of the section 18 15.10 since she is an individual and has been holding an asset for
one year and according to the section 115-15, the acquisition of the asset was done after
September of 1999 according to the section 115-25.
Part 3