LAWS20060 Taxation Law Assignment: Question Answers - Term 2 2019

This document presents a comprehensive solution to a taxation law assignment, addressing several key areas of Australian tax law. The assignment includes detailed answers to specific questions, analyzing scenarios related to Capital Gains Tax (CGT) events, including options for extending leases and the sale of shares. It examines the application of CGT discounts and capital loss offsets, referencing relevant sections of the Income Tax Assessment Act 1997 (ITAA 1997). Furthermore, the assignment explores the main residence exemption, evaluating its eligibility when a property is used for business purposes, such as a physiotherapy practice. The solution calculates assessable capital gains and clarifies the implications of partial exemptions. The document also delves into the cost base and reduced cost base concepts for CGT assets. Additionally, the assignment addresses the tax treatment of various income sources, including income from illegal activities, bank interest, casino winnings, rental income, and employee allowances, citing relevant sections of the ITAA 1997 to support the analysis. The assignment is well-structured, providing clear explanations and referencing relevant legal authorities.