uestion 1 ee Lin is an Australian resident individual. She purcnased a black f a
ID: 2390447 • Letter: U
Question
uestion 1 ee Lin is an Australian resident individual. She purcnased a black f ats mais NSW as an investment on 3 March 2001 of $70,740 on the purchase and $2.300 in legal costs for $1 550,00D. She paid stanp dny Lee Lin sold the block in December 2015 for $3 ,600,000 incuing S legal costs and $108,000 for agent's commission Lee Lin incurred interest on the amount borrowed to purchase the proped $360,000 and council rates totalling $14,000. Required: a) Calculate the cost base for this asset. (4 marks) b) Calculate the capital gain or loss for the disposal of this asset (2 Mas c) Calculate Lee Lin's assessable income for the 201512016 year assuming she made a salary of $42,000, net rental income of $50,000 and a capita loss of $2,130 from the sale of some shares purchased in 2007 (marksExplanation / Answer
(A)/(B)Calculation of Capital Gain
Particulars
in $
Sale Consideration
36,00,00
0
Less:-
Legal cost
4,000
Agents commission
1,08,000
Net Sale Consideration (A)
34,88,00
0
Purchase Consideration
15,50,00
0
Add:-
Stamp duty
70,740
Legal Cost
2,300
Interest on Loan
3,60,000
Council Rates
14,000
Net Purchase Consideration (B)
19,97,04
0
Capital Gain (A-B)- [C]
14,90,96
0
Please note- Since cost inflation index is not given, we have not taken the same for calculation purpose. Also it is assumed that interest cost and council rates are incurred directly foe the purpose of property hence taken.
(C) Calculation of Assessable Income
Particulars
in $
Salary Income
42000
Rental Income
50000
Capital Gain (Refer Note 1)
14,88,83
0
Assessable Income
15,80,83
0
Note 1:-
Calculation of Capital Gain for Income purpose
Long term capital gain
14,90,96
0
Less:- Short term capital loss, set off against long term capital gain
2130
Net Capital gain for Income purpose
14,88,83
0
Particulars
in $
Sale Consideration
36,00,00
0
Less:-
Legal cost
4,000
Agents commission
1,08,000
Net Sale Consideration (A)
34,88,00
0
Purchase Consideration
15,50,00
0
Add:-
Stamp duty
70,740
Legal Cost
2,300
Interest on Loan
3,60,000
Council Rates
14,000
Net Purchase Consideration (B)
19,97,04
0
Capital Gain (A-B)- [C]
14,90,96
0
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.