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# Question_1=] - Question 1 Alexs home The house was...

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Alex’s home The house was purchased on 2 Dec, 1985 for \$180,000 & used as a main residence. The house was sold on 30 April, 2008 for \$450,000. ANS: N ,, m Section 118-110 main residence had not been used for any income-producing purposes; any capital gain on disposal of the residence (CGT event A1) is exempt from capital gain tax. Block of land Alex inherited the block of land from his grandmother ho died on 1 August, 1990. His grandmother had purchased the property on 1 January, 1985 for \$80,000 . (the market value on 1 August, 1990 as \$200,000) Alex received an offer for the land of \$300,000 on 1 January, 2008. He accepted the offer. Contracts were exchanged on 15 February, 2008 and settlement took place on 15 March, 2008. *N :N 1985 N 9 N 20* ANS: use 2 method to calculation 1] Indexation meth *20/9/1985 to 21/9/1999 N lee N buy N indexation* Section item date cost indexation indexed amount Div. 110 Cost 1/8/1990 \$80,000 123.4/103.3=1.195 \$95,600 Div. 116 Consideration 1/1/2008 \$300,000 2] Discounting Method *if N 12 * Div.115 (\$300,000-\$80,000) X 50% = \$110,000 Section 100-45 since _________ method gives a better result; Alex would choose to us the _______ method and therefore have a capital gain of ___________ Boat Alex purchased a boat on 29 Oct., 1985 for \$9500 and the boat were sold on 15 May, 2000 for \$5000. ANS: N Section 108-20, under \$100,000 after indexation, if you have loss, than do not need to calculation Car Alex sold his prized Mercedes convertible on 15 March, 2008 for \$300,000. He had purchased the car on 1 January, 2004 for \$45,000. ANS:N

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## This note was uploaded on 03/26/2011 for the course ECON 146 taught by Professor Tony during the Spring '11 term at FH Accadis.

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Question_1=] - Question 1 Alexs home The house was...

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