Which of the following assets will NOT attract any capital gains tax? Select one: All of the options will attract CGT Canoe acquired for $12,000 and sold for $15,000 Rare coin acquired for $550 and sold for $1,000 Sale of the tax payer's main residence Shares acquired in October 1985 and sold for profit in 2020

Which of the following assets will NOT attract any capital gains tax? Select one: All of the options will attract CGT Canoe acquired for $12,000 and sold for $15,000 Rare coin acquired for $550 and sold for $1,000 Sale of the tax payer's main residence Shares acquired in October 1985 and sold for profit in 2020

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A: Summary:Asset X:Capital gain: $250Tax on sale: $100Asset Y:Capital gain: $5,000Tax on sale: $2,000

Question

Which of the following assets will NOT attract any capital gains tax?

Select one:

All of the options will attract CGT

Canoe acquired for $12,000 and sold for $15,000

Rare coin acquired for $550 and sold for $1,000

Sale of the tax payer's main residence

Shares acquired in October 1985 and sold for profit in 2020

Definition Definition Increase in the value of a capital asset and the amount that is realized when the asset is sold off. A capital gain may be short-term or long-term depending on the tenure for which the asset is held.

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