Question

During the 2019/20 income year, Maxwell Johnson, sold various assets that realized capital gains and losses as follows: Items Amount ($) Loss on sale of motor vehicle 5,600 Gain on sale of yacht (cost base not indexed) 21,900 Gain on sale of antique crockery (indexed cost base) 13,900 Loss on sale of jewelry 1,300 Gain on sale of land held as an investment (cost base not indexed) 24,000 Gain on sale of family home (cost base not indexed) 38,000 Loss on sale of shares 19,300 Gain on sale of rental property (indexed cost base) 21,000 Gain on sale of rare comic book collection (cost base not indexed) 7,500 Capital loss from a previous year from the sale of shares 6,400 In each case above, the asset has been held by Maxwell for more than 12 months and the relevant minimum cost thresholds have been exceeded. Required: calculate the minimum net capital gain that Maxwell is required to include as assessable income for the 2019/20 income year

Answer 1

Answer:

The minimum net capital gain that Maxwell is required to include as assessable income for the 2019/20 income year is $23,800.

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Explanation:

	Collectables	Personal & other use	Other Method & Index
	$	$
Antique Furniture	13,900
Jwellwey	-1,300
Comic book collections	7,500
Land		24,000
Family Home				Exempt
Shares		-19,300
Motor vehicle				Exempt
Yatch		21,900
Rental property		21,000
Losses Brought Forward	$20,100	$47,600
Net Gain		$47,600
Less: Discount	(50% × 47,600)	$23,800
NET CAPITAL GAIN		$23,800
Collectible losses to be carry forward			$20,100