Calculate the cost base for this asset
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1. Candy purchased a 3 bedrooms house in St Kilda on the 1’s March 2015 for the cost of
$1.3M. She paid a stamp duty on the transaction for $74,750. She also incurred legal fees of
$3,500. She then rent the apartment out straight away for the amount of $30,000/year net.
In the year of 2017, she renovated the kitchen and bathroom for the cost of $150,000 to
make the house looks more modern.
Candy finally sold the house in November 2019 for $2.15M, incurring legal costs of $4,500
and agent’s commission of $40,000.
Candy also incurred interest on the amount borrowed to purchase the property of $120,000
and council rates totalling $20,000
Required:
• Calculate the cost base for this asset
• Calculate the
• Calculate Candy’s assessable income for Income year 19/20 assuming she made a salary
of $90,000, net rental ncome of $30,000 an capital loss of $4,250 from the sale of some
shares (purchased 10 years ago)
• Would your answer will be different if Candy stay at the home as her main residence
instead of renting it out?
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- Candy purchased a 3 bedrooms house in St Kilda on the 1’s March 2015 for the cost of$1.3M. She paid a stamp duty on the transaction for $74,750. She also incurred legal fees of$3,500. She then rent the apartment out straight away for the amount of $30,000/year net.In the year of 2017, she renovated the kitchen and bathroom for the cost of $150,000 tomake the house looks more modern.Candy finally sold the house in November 2019 for $2.15M, incurring legal costs of $4,500and agent’s commission of $40,000.Candy also incurred interest on the amount borrowed to purchase the property of $120,000and council rates totalling $20,000Required:• Calculate the cost base for this asset• Calculate the capital gain or loss for the disposal of the asset• Calculate Candy’s assessable income for Income year 19/20 assuming she made a salaryof $90,000, net rental ncome of $30,000 an capital loss of $4,250 from the sale of someshares (purchased 10 years ago)• Would your answer will be different if Candy…On 1 December 2016 Dheshnie Singh, a resident of the republic, purchased a primary residence for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms. (In other words, she traded from a portion of her primary residence. The granny flat portion of this primary residence comprises 20% of the total primary residence. She lived in this primary residence, and practiced from its granny flat, for the 14 month period from 1 December 2016 until 31 January 2018. On 1 February 2018 she sold her primary residence for R4 000 000. Required Determine the capital gains tax consequences that result from the purchase and sale by Dheshnie Singh of her primary residence.1. In 2008, Barney purchased a holiday home near the beach for use by his family on weekends for $700,000. Barney was required to pay $40,000 stamp duty in respect of the transfer. He borrowed money from a bank to fund some of the purchase prices and paid $20,000 in interest on the loan. Last year, he also paid $33,000 to a builder to renovate the kitchen in the property. Required: What's the cost base of the property? 2. John acquired a CGT asset in June 1987 for $500,000. He sold the asset in January 2016 for 300,000. Required: What's the net capital gain/loss using the indexation method and Discount method.
- On 1 December 2017 Suvi Singh, a resident of the republic, purchased a primary residence for R2 300 000. She used the granny flat portion of her primary residence as her consulting rooms. (In other words, she traded from a portion of her primary residence.) The granny flat portion of this primary residence comprises 20% of the total primary residence. She lived in this primary residence, and practiced from its granny flat, for the 14 month period from 1 December 2017 until 31 January 2019. On 1 February 2019 she sold her primary residence for R4 000 000. Required: Determine the capital gains tax consequences that result from the purchase and sale by Suvi Singh of her primary residence.1. In August of 2017, Bill bought a Chevrolet Tahoe (heavy SUV) for $72,400 to be used 80 percent in his business as a self-employed realtor. What is the maximum amount that he can deduct in 2017 including Sec. 179 expensing, bonus depreciation, and MACRS depreciation? 2. Sarah bought a passenger car on June 6, 2017 for $49,300 to be used 65 percent of the time in her business. What is the maximum amount that Sarah can deduct for the car in 2017 assuming that she claims bonus depreciation and MACRS depreciation on the car?Xavier runs a florist shop. Her assistant goes out everyday in the van delivering flowers. The van accumulates high mileage quickly and Xavier usually replaces it after 3years. The van cost £10,100 on 1 June 2017 and Xavier has depreciated it on the reducing balance basis at 35% per year for 3 years. She sells it on I June 2021 for £3,000. Xavier year end is 31 May, depreciation is calculated annually at the year end. What is the profit or loss on the sale of the van?
- A. Mohammad owned few real properties in Malaysia. The details of the transactions on the real properties owned by him are as follows: Apartment Mohammad purchased an apartment in April 2013 costing RM95,000. The incidental costs incurred on the purchased of the apartment was RM5,250. In June 2015, there was an offer from his friend to buy the apartment for RM140,000 whilst the market value is only RM120,000. Instead of selling the apartment to his friend, Mohammad transferred the properly to his sister who as a gift for her wedding. Determine whether Real Property Gains Tax (RPGT) is applicable upon disposal of the apartment and land made by Mohammad and calculate the RPGT Payable (if any). B. Angeline, a non-Malaysian citizen, but permanent resident of Malaysia, sold a house in which she had been residing up to the date of its disposal on 8 March 2016. The house was sold for RM378,000. It was purchased on 14 April 2013 for RM299,000. This is the only property Angeline has ever…In 2018, José purchased a house for $197,400. He used the house as his personal residence. In September 2021, when the fair market value of the house was $315,700, he converted the house to rental property. If required, round your answers to the nearest dollar. Click here to access depreciation tables in the textbook. a. José's basis for cost recovery for the property is $ b. Under MACRS, the cost recovery period for residential rental real estate is convention. c. The cost recovery for 2021 is $ years, and it is subject to theAmanda purchased a home for $520,000 in 2016. She paid $104,000 cash and borrowed the remaining $416,000. This is Amanda's only residence. Assume that in year 2021 when the home had appreciated to $780,000 and the remaining mortgage was $312,000, interest rates declined and Amanda refinanced her home. She borrowed $520,000 at the time of the refinancing, paid off the first mortgage, and used the remainder for purposes unrelated to the home. What is her total amount of her amount of acquisition indebtedness for purposes of determining the deduction for home mortgage interest? (Assume not married filing separately.)
- Anne sold her home for $290,000 in 2021. Selling expenses were $17,400. She purchased it in 2015 for $200,000. During the period of ownership, Anne had done the following: • Deducted $50,500 office-in-home expenses, which included $4,500 in depreciation. (Refer to text Section 9-6a.) • Deducted a casualty loss in 2017 for residential trees destroyed by a hurricane (her county was declared a Federal disaster area). The total loss was $19,000 (after the $100 floor and the 10%-of-AGI floor), and Anne's insurance company reimbursed her for $13,500. (Refer to text Section 7-3.) • Paid street paving assessment of $7,000 and added sidewalks for $8,000. • Installed an elevator for medical reasons. The total cost was $20,000, and Anne deducted $13,000 as medical expenses. (Refer to text Section 10-1b.) What is the amount that Anne realized on the sale? What is the adjusted basis of Anne's home? Anne's realized gain on the sale is $ ?Jackie inherited an empty warehouse from her mother in August 1992. Her mother had originally bought it in November 1986 for $40,000. It was worth $110,000 when Jackie inherited it. In 2020 Jackie spent $450,000 to convert the building into two apartments.What is the cost base (excluding indexation) of the building, if Jackie were to sell the two apartments today? a. $40,000 b. $490,000 c. $560,000 d. $450,000ryan Mills has a very particular set of skills required across many parts of the world. Bryan owned a condo in Toronto, a ski chalet in Whistler, BC, and a villa in Malta, Europe until June 15, 2017 when he sold all three properties and moved into a seniors’ residence. He provided the following information with respect to the properties: Property Year Acquired Cost Selling Price (net of commission and other selling costs) Toronto 2011 $400,000 $480,000 Malta 2012 $200,000 $265,000 Whistler 2014 $300,000 $356,000 For the years that Bryan owned each property, he ordinarily inhabited it at some time in the year. He tended to spend the months of January to April in Malta and split the remainder of the year between his condos in Toronto and Whistler. Determine the minimum taxable capital gain to be reported by Bryan on the sale of the three properties. Explain how would the answer change if Bryan had moved out of the Toronto condo in 2013 when it…