Detailed Analysis of Capital Gains Tax and Depreciation in Australia

This assignment provides a detailed analysis of capital gains tax (CGT) and depreciation rules under Australian tax law. The first part of the assignment examines the CGT implications for an individual selling various assets, including a home, car, small business, furniture, and paintings. It analyzes relevant sections of the Income Tax Assessment Act 1997 to determine the taxability and exemptions for each asset sale. The second part focuses on the depreciation of a CNC machine imported by a manufacturing company. It addresses which costs are capitalized for depreciation purposes, the treatment of post-installation expenses, and the start date for calculating capital allowances. The analysis references specific sections of the Income Tax Assessment Act 1997 to support the conclusions regarding asset valuation and depreciation methods. References to relevant legislation and online resources are also provided to support the analysis.