Question

Question 5 (15 marks) Maurice is an individual tax resident of Australia for tax purposes. He has the following assets: His home was acquired on 20 February 1989 for $140 000. The home was never used for any income producing purpose. The estimated market value of the house on 1 March 2018 is $310 000 Shares in FUL Pty acquired on 10 April 1984 at a cost of $15 000. Furniture acquired on 20 May 2010 for $9 500. Block of vacant land acquired on 20 June 1997 at a cost of $100 000. The estimated market value of the vacant block on 15 May 2018 is $475 000. Maurice subsequently sold the following assets: His home was sold on 1 March 2018 for $325 000 The FUL Shares were sold on 15 March 2018 for $19 000 The furniture was sold on 1 May 2018 for $5 000 The block of vacant land was sold on 15 May 2018 for $465 000. Maurice also has a carry forward capital loss of $12 500 from the sale of an antique drumkit and a carry forward capital loss $5 000 from the sale of underperforming shares in an earlier income year. Maurice is not a share trader. Maurice has also incurred interest expenses on the vacant block of land of $110 000 over the time he owned the vacant block. He never used the vacant block for any income producing purpose. Required With reference to relevant legislation and cases calculate the net capital gain or loss as applicable for Maurice for the 2017/18 income year.

Answer 1