Taxation Law Assignment: Income, Capital Gains, and Rental

This assignment solution provides a detailed analysis of taxation law, encompassing various aspects of income, capital gains, and rental property. It begins with an assessment of assessable income, including earnings, compensation, and superannuation contributions. The solution then delves into capital gains, presenting a worksheet with calculations for shares in companies like BHP, CBA, COH, FLT, MYR, and TLS, along with a completed capital gains tax (CGT) schedule for 2017. The assignment further examines rental property, providing a schedule with income and expense details. Additionally, it includes a tax payable, offsets, and levies section, along with a depreciation worksheet detailing asset depreciation. The solution references relevant taxation laws and rulings, offering a comprehensive understanding of the subject matter.

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Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID
TABLE OF CONTENT

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1. workpapers.......................................................................................................................................1
assessable Income associated to work.....................................................................................................1
Capital Gains........................................................................................................................................1
Capital gains tax (CGT) schedule 2017..................................................................................................5
Rental Property....................................................................................................................................8
Tax payable, offsets and Levies...........................................................................................................9
Depreciation Worksheet......................................................................................................................9
References:.............................................................................................................................................11

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1. WORKPAPERS
ASSESSABLE INCOME ASSOCIATED TO WORK
Particulars Amount in ($)
Earnings of Spouse $64000
Compensation from Medical expenditure $8000
Superannuation $10000
Total $82000
As it has been defined under the “section 6-5 of the Income Tax Assessment Act 1997” a person generating income from the
employment income of from the business or profession directly would be considered as the assessable income (Barkoczy 2016). Important
considerations in this regard the individual taxpayer would be able to claim the deductions for the expenditure that are directly incurred in
gaining the assessable income of the taxpayer.
At the time of ascertaining the assessable income there are three important factors that must be considered. Evident these three factors
include the income derived by the spouse in the form of salary or wages, compensation relating to the medical and contribution from the
superannuation fund would be regarded as the portion of salary sacrifice made by the employer. The aforesaid mentioned three factors is
generally regarded as the taxable income this is because the salary or the wages of the spouse would be to regarded as the assessable income
under section 8-1 of the ITAA 1997 (Braithwaite 2017).
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Capital Gains
Capital Gains Worksheet2017
Description
BHP % 100.00 SHARES - AUST
Acquisition:
01/06/2016 BHP shares 2,500 12,500 2 1.000 12,500
Disposal:
01/12/2016 2,500 50,925
Cost base 12,500 Frozen 12,500
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to discount) 38,425 /
Frozen Indexation 38,425 /
CBA % 100.00 SHARES - AUST
Acquisition:
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01/01/2016 CBA 2,000 10,800 2 1.000 10,800
Disposal:
01/12/2016 2,000 151,880
Cost base 10,800 Frozen 10,800
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to discount) 141,080 /
Frozen Indexation 141,080 /
COH % 100.00 SHARES - AUST
Acquisition:
01/01/2016 COH 1,000 2,900 2 1.000 2,900
Disposal:
01/12/2016 1,000 124,770
Cost base 2,900 Frozen 2,900
- Allowable deductions
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+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to discount) 121,870 /
Frozen Indexation 121,870 /
FLT % 100.00 SHARES - AUST
Acquisition :
01/01/2016 FLT 1,000 950 2 1.000 950
Disposal:
01/12/2016 1,000 32,290
Cost base 950 Frozen 950
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to discount) 31,340 /
Frozen Indexation 31,340 /
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MYR % 100.00 SHARES - AUST
Acquisition:
01/01/2016 MYR 10,000 41,000 2 1.000 41,000
Disposal:
01/12/2016 10,000 12,100
Cost base 41,000 Frozen 41,000
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to discount) 0 /
Frozen Indexation 0 /
TLS % 100.00 SHARES - AUST
Acquisition:
01/01/2016 TLS 2,000 6,600 2 1.000 6,600
Disposal:
01/12/2016 2,000 11,500
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Cost base 6,600 Frozen 6,600
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to discount) 4,900 /
Frozen Indexation
4,900 /
CAPITAL GAINS TAX (CGT) SCHEDULE 2017
For instructions on how to complete this schedule refer to the publication Guide to capital gains tax.
Tax file number (TFN) 589 548 669
Taxpayer's name Ms Louie Turley
Australian Business 84 111 122 223
Number (ABN)
1 Current year capital gains and capital losses
Capital gain Capital loss
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Shares in companies listed on A $ 337,615 K $
an Australian securities exchange
Other shares B $ L $
Units in unit trusts listed on C $ M $
an Australian securities exchange
Other units D $ N $
Real estate situated in Australia E $ O $
Other real estate F $ P $
Amount of capital gains from a trust G $
(Including a managed fund)
Collectables H $ Q $
Other CGT assets and any I $ R $
Other CGT events
Total current year Add the amounts at labels K to R and write
Capital gains J $ 337,615 the total in item 2 label A - Total current year
capital losses.
2 Capital losses
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Total current year capital losses A $ 0
Total current year net capital losses applied B $ 0
Total prior year net capital losses applied C $ 0
Total capital losses transferred in applied
(only for transfers involving a foreign bank branch or permanent D $
establishment of a foreign financial entity)
Total capital losses applied E $
Add amounts at B, C and D.
3 Unapplied net capital losses carried forward
Net capital losses from collectables carried forward to later income years A $
Other net capital losses carried forward to later income years B $
Add amounts at A and B and transfer the total
to label V - Net capital losses carried forward
to later income years on your tax return.
4 CGT discount
Total CGT discount applied A $ 0
6 Net capital gain
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Net capital gain A $ 337,615
1J less 2E less 4A less 5D (cannot be less than
zero). Transfer the amount at A to label A - Net
capital gain on your tax return.
Taxpayer's declaration
If the schedule is not lodged with the income tax return you are required to sign and date the schedule.
Important
Before making this declaration check to ensure that all the information required has been provided on this form and any attachments to this
Form, and that the information provided is true and correct in every detail. If you are in doubt about any aspect of the tax return, place all the
Facts before the ATO. The income tax law imposes heavy penalties for false or misleading statements.
Privacy
Taxation law authorises the ATO to collect information and disclose it to other government agencies. For information about your privacy
go to ato.gov.au/privacy
I declare that the information on this form is true and correct.
Signature Date
Contact person Daytime contact number (include area code)
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As it has been defined under the taxation ruling of “taxation ruling of 95/35” a person that is making capital gains from the sale of the
asset would be considered for assessment under the capital gains tax for the amount of gains derived (Braverman, Marsden and Sadiq 2015). The
ruling is largely related to the capital tax consequences from the receipt of compensation amount. The “taxation ruling of 95/35” evidently puts
forward by stating that where the taxpayer receives compensation for the sale of asset will be considered for assessment under the capital gains
tax.
One of the important aspects concerning the receipt of the compensation amount relates to the value derived from the sale of property or
from the sources especially from the underlying asset sales (Gale and Samwick 2014). Similarly the compensation received in the form of
revenue from the dissected asset would be considered as the aspect of compensation. According to the present situation, it is understood that the
transfer of shares to the current shareholders based on the death of the original shareholders in the hands of the recipient would be regarded as
the asset.
In the present context it is evidently understood that the shares that are held in CBA, BHP, COH, MYR and TLS whose selling price
would be determined in respect of the share price and the present market reported by the taxpayer in respect of the demise of the original
shareholder. As it as stated in “Inspector of Taxes v. Bensons Hosiery (Holdings) Pty ltd” the court of law has bought forward its decision that
lawful enforceable rights can be converted in the asset in respect of the capital gains tax legislature (Snape and De Souza 2016).
Rental Property
Rental Property Schedule for 2017
Address of Rental Property 4/285 Pacific parade
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