Taxation

Running head: TAXATION
Taxation
Name of the Student
Name of the University
Authors Note
Course ID

TAXATION1
Table of Contents
Assessment 1:.............................................................................................................................2
Answer to question 1:.............................................................................................................2
Calculation of net capital gains on property:.........................................................................2
Answer to question 2:.............................................................................................................3
Answer to question 3:.............................................................................................................4
Answer to question 4:.............................................................................................................4
Answer to question 5:.............................................................................................................4
Answer to question 6:.............................................................................................................5
Answer to question 7:.............................................................................................................5
Answer to assessment 2:............................................................................................................6
Answer to question 1:.............................................................................................................6
Answer to question 2:.............................................................................................................6
Answer to question 3:.............................................................................................................6
Answer to question 4:.............................................................................................................7
Answer to question 5:.............................................................................................................7
Answer to question 6:.............................................................................................................7
Answer to question 7:.............................................................................................................8
Answer to question 8:.............................................................................................................8
References:.................................................................................................................................9

TAXATION2

TAXATION3
Assessment 1:
Answer to question 1:
Calculation of net capital gains on property:
Computation of Net Capital Gains
In the books of Peter Smith
For the year ended 2017
Particulars Amount ($) Amount ($)Capital gain on sale of Lot 1
Gross Sales Proceeds (CGT Event A1, S-
104 (10)
1,85,000.00
Less: Agent Commission 3,095.00
LTO Fees 157.00
Search Cost 110.00
Conveyancer Fees 550.00
Other settlement cost 462.50
Adjusted Rates 379.76Net Sales proceeds 1,80,245.74
Cost base Item (S-110-25(1)-(6))
Cost of Acquisition
Cost of land (45.52% of 250,000) 1,13,800.00Add: Stamp duty on Purchase 4,076.32
Registration of Transfer 757.91
Government Fees 90.13
Conveyancer Fees 250.36
Interest Paid 13,262.83
Council rates 1,300.26
Water Rates 1,559.66
ELS 206.74
Subdivision Cost 13,579.57Total Cost Base 1,48,883.78Total Capital gain on sale of Lot 1 31,361.96
Capital gain on Sale of Lot 2
Gross Sales Proceeds (CGT Event A1, S-
104 (10)
2,12,000.00
Less: Agent Commission 2,750.00
LTO Fees 157.00
Conveyancer Fees 550.00
Other settlement cost 423.00
Adjusted Rates 430.56 2,07,689.44