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Taxation Practice, Theory and Law - Assignment

   

Added on  2020-04-01

10 Pages1898 Words113 Views
RUNNING HEAD: TAXATION THEORY, PRACTICE AND LAWTAXATION THEORY, PRACTICE AND LAW
Taxation Practice, Theory and Law - Assignment_1
TAXATION THEORY, PRACTICE AND LAW1ContentsQuestion 1.............................................................................................................................................2Question 2.............................................................................................................................................3Question 3.............................................................................................................................................4Question 4.............................................................................................................................................5Question 5.............................................................................................................................................6REFERENCES..........................................................................................................................................8
Taxation Practice, Theory and Law - Assignment_2
TAXATION THEORY, PRACTICE AND LAW2Question 1The requirement of this question is to compute the net capital gain or net capital loss of the assets acquired by Eric. The capital gains or capital losses are levied under section 108-20 and under section 108-10 of ITAA 1997.The computation of capital gains/losses are as follows:ERICCAPITAL GAINS/LOSSESParticularsAntique VaseAntique ChairPainting Home SoundSystemShares in listed companyPurchase cost200030009000120005000Sales Value3000100010001100020000Capital Gains$1,000.00-$2,000.00-$8,000.00-$1,000.00$15,000.00Total Capital Gains for the year$15,000.00Total Capital Lossesfor the year-$9,000.00Capital Loss of $ 1000 incurred because of sale of home sound system is not permissible to set off as per Section 108-20 of ITAA 1997. The reason is home sound system is a personal assets and the sale of personal assets is not levied under capital gains tax. Further Eric has earned a capital gain from the sale of shares of $ 15000 but this capital gain cannot be used for the set-off of total capital losses of $ 9000 according to section 108-10 of ITAA 1997. However, the capital losses will be carried forward in future under section 108-10 of ITAA 1997.Therefore, Eric cannot set-off the capital losses of $ 9000 against the capital gains of $ 15000 earned from sale of shares.
Taxation Practice, Theory and Law - Assignment_3

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