Tina is a tax resident in Country A. She acquired the following assets in 2017: (a) two houses located in Country A. The cost of each house was $10 million. (b) a house located in Country B. The cost of the house was $25 million. (C) a motor vehicle for $3 million. (D) a painting. She paid $2.5 million. (E) Government bond issued by Country A for $500,000. In 2021, she disposed of all the properties and received the following disposal proceeds: Painting - $1million House in Country A - $25 million each House in Country B - $35 million Motor vehicle $3.5 million Government bond- $1 million. In Country A, full tax relief is available for the principal place of residence. An annual exemption of $500,000 is also available. Tina incurred agency fees of $180,000 and $100,000 on the disposal of the houses located in Country A and Country B respectively. Prior to disposing of the house in Country B, she incurred repair expenses of $2 million. Tina also incurs monthly maintenance of $20,000 for each house. Tina's accumulated capital losses as at 31 December 2020 was $2,500,000 broken as follows: 2020 - $700,000 2019- $1,300,00 2018-$ 500,000 Using the 2 steps system template to determine Tina’s capital gains status for 2021, explain how you arrived at your answer.
Tina is a tax resident in Country A. She acquired the following assets in 2017:
(a) two houses located in Country A. The cost of each house was $10 million.
(b) a house located in Country B. The cost of the house was $25 million.
(C) a motor vehicle for $3 million.
(D) a painting. She paid $2.5 million.
(E) Government bond issued by Country A for $500,000.
In 2021, she disposed of all the properties and received the following disposal proceeds:
Painting - $1million
House in Country A - $25 million each
House in Country B - $35 million
Motor vehicle $3.5 million
Government bond- $1 million.
In Country A, full tax relief is available for the principal place of residence. An annual exemption of $500,000 is also available.
Tina incurred agency fees of $180,000 and $100,000 on the disposal of the houses located in Country A and Country B respectively.
Prior to disposing of the house in Country B, she incurred repair expenses of $2 million. Tina also incurs monthly maintenance of $20,000 for each house.
Tina's accumulated capital losses as at 31 December 2020 was $2,500,000 broken as follows:
2020 - $700,000
2019- $1,300,00
2018-$ 500,000
Using the 2 steps system template to determine Tina’s
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