Exam 4: Capital Gains Tax

During the 2020 tax year Matthew advises you that he sold the following assets: 1. A painting for $6,000. He purchased the painting 3 years ago for $10,000. 2. A piano for $9,000. He purchased the piano 10 years ago for $5,000. 3. Shares in public companies for $20,000. He purchased these shares 5 years ago for $10,000. 4. Jewellery for $3,000. He purchased this jewellery for $8,000 6 years ago. What is Matthew's net capital gain for the 2020 year?

Ryan and Richard ran a business selling furniture in partnership for 10 years. They now have sold their business for $1,200,000. This figure includes $400,000 in trading stock and $200,000 in plant and equipment. The business had a turnover of $300,000 per year. The business was purchased in 2010 for $200,000. Ryan and Richard are both 50 years of age. Calculate the net capital gain for both Ryan and Richard?

A company purchased some land in June 1990 for $1 million. The company sold this land in January 2020 for $2.2 million. The company also had some carry forward capital losses of $200,000. What is the company's net capital gain on the sale of this land?

During the 2020 tax year Ralph sold the following assets: 1,000 shares in ABC Ltd for $5 per share. Ralph had purchased these shares in 2016 for $3 per share. Ralph also sold 500 shares in DEF Ltd for $8 a share in April 2020. Ralph had purchased these DEF shares in 2008 for $10 a share. What is Ralph's net capital gain for the 2020 tax year?

Pontoon Pty Ltd is a company with a single shareholder and it sells its business assets in June 2020 for $850,000. Included in these business assets are $200,000 of exempt CGT assets (trading stock and plant and equipment). The company has an annual turnover of $600,000. The cost base of the business assets is $250,000 and these assets were acquired in 2014. The owners of the company do not intend to purchase another business. What is the company's net capital?