Lisa’s Darwin Home Lisa sold her home in Darwin (contract date September 2019, settlement December 2019), receiving $1,220,000 at settlement. This is after legal fees ($12,000), advertising ($2,000) and real estate commissions ($25,000) were deducted. Records indicate that Lisa purchased the property in 2002 (contract date January, settlement March) for $653,000. Legal fees, commissions and advertising of $8,000 were also incurred. Lisa moved in within 6 months, selling her former residence during that time. Over the ownership period, Lisa rented the property for three years beginning December 2010, with $65,000 of $120,000 in non-capital costs claimed against rental income. The property was valued at $890,000 at the time it began being rented. Sculpture Lisa gave a sculpture, valued at $18,900, to her friend in June 2020. The sculpture was purchased for $480 in December 2000 and repaired in March 2016 for $1,250. Vase When Lisa was playing with her cat in September 2019, the cat accidentally knocked over and broke a vase given to her by her grandmother in September 2018 (worth $6,100 at that time). The vase dated back to the Australian gold rush (circa 1850's) and, after undertaking some research, she discovered it was currently worth approximately $27,000. Lisa did not have insurance for the item. A.1 Determine the taxable capital gain (loss) on the sale of the home. Briefly justify your answer/show all workings. A.2 Determine the taxable capital gain (loss) on the sale of the Sculpture. Briefly justify your answer/show all workings A.3 Determine the taxable capital gain (loss) on the sale of the Vase. Briefly justify your answer/show all workings.
Lisa’s Darwin Home
Lisa sold her home in Darwin (contract date September 2019, settlement
December 2019), receiving $1,220,000 at settlement. This is after legal fees
($12,000), advertising ($2,000) and real estate commissions ($25,000) were
deducted.
Records indicate that Lisa purchased the property in 2002 (contract date
January, settlement March) for $653,000. Legal fees, commissions and
advertising of $8,000 were also incurred.
Lisa moved in within 6 months, selling her former residence during that
time.
Over the ownership period, Lisa rented the property for three years
beginning December 2010, with $65,000 of $120,000 in non-capital
costs claimed against rental income. The property was valued at
$890,000 at the time it began being rented.
Sculpture
Lisa gave a sculpture, valued at $18,900, to her friend in June 2020. The
sculpture was purchased for $480 in December 2000 and repaired in March
2016 for $1,250.
Vase
When Lisa was playing with her cat in September 2019, the cat accidentally
knocked over and broke a vase given to her by her grandmother in
September 2018 (worth $6,100 at that time). The vase dated back to the
Australian gold rush (circa 1850's) and, after undertaking some research,
she discovered it was currently worth approximately $27,000. Lisa did not
have insurance for the item.
A.1 Determine the taxable
justify your answer/show all workings.
A.2 Determine the taxable capital gain (loss) on the sale of the Sculpture.
Briefly justify your answer/show all workings
A.3 Determine the taxable capital gain (loss) on the sale of the Vase. Briefly
justify your answer/show all workings.
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