Taxation Law Assignment: Capital Gains and Depreciation

This taxation law assignment addresses several key aspects of Australian tax law. The first part of the assignment focuses on capital gains tax (CGT), examining scenarios involving a family home (pre-CGT asset), the sale of a car, business sales (including small business concessions such as the 15-year exemption, 50% reduction, retirement concessions, and rollover relief), furniture, and paintings (collectibles). It analyzes the application of CGT rules, including exemptions and relevant sections of the Income Tax Assessment Act 1997 (ITA Act 97). The second part of the assignment explores depreciation, specifically concerning the deduction for the decline in value of a depreciating asset. It analyzes the cost base of an asset, including acquisition and installation costs, and applies these principles to a case involving a CNC machine. The assignment references relevant sections of the ITA Act 97 and legal precedents to support its conclusions.