Question

Madison Turner, an Australian resident, seeks advice on the CGT consequences of the following events. She exchanged contracts for the acquisition of an investment property, at market value, on 30 January 1999, paying a 10% deposit of 60,000. Property settlement was deferred until 10 December 2001, when the balance of $540,000 was paid, title transferred, and her name was recorded as the registered proprietor. At the time of the settlement, the market value of the property was $800,000. She sold the property on 15 June 2019 for $1 million.

She also bought 20,000 shares in BHP Billion in October 1985, paying $18.50 per share. She decided to sell her entire holding, for $40 per share, and signed a share transfer document and handed the transfer and share script to the Stock Exchange on 21 June 2019. The transfer was not registered with BHP Billiton until 10 July 2019.

She also incurred a capital loss of $50,000 from another CGT event in 2019/2020.

Your Task: Calculate net capital gains (losses) to be included in Madison Turner’s tax return for the years ending 2019 and 2020.

You have to include ALL available methods for calculating the net capital gains for the years ending 2019 and 2020.

Answer 1

gave odvarce Answer: Summarized the infromation given inte question modison Tuthee, on-futiator cesidat; Calculating net capital gairs (losses) to be included in madison Turner's Tox for the years ending 2019 :E 2010; Capital gain on sale of land: A person is said to be the broner of the land when the title deed of such property is transfered in his/her name of he/she gets the right to use such property. In the given case, madison for property on 30th Jan, 1999 it will be treated as advance as she is not the beneficial owner of the property. the property got. transferred to her 10th Dec 2001 after she did the balance payment of $540000. Ako, as per accounting standards for Immovable assets says, the cost will be the amount paid for the for the property subject to any impairment done. So, Capital gain = Sale, cost $1,000,000 - $$ 6,00,000 $ 4,00,000. Capital gain on sale of Shares. On =

(2) to use e transfer date is In this case, she transferred the lights of benefeciary rights on 21st Juri, 2019. Because of the delay of stock exchange it cannot be said that the 10th July 2019. •Capital gaina Sale-cost = (40x 20000) -(18.5x80000) $4,30,000 • Net capital gain clos) = 400000 +430000 50,000 = $7,80,000 *
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