Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500.use both Indexation and Discount Capital Gain. Later on you need to advise which one will give you a better result.
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Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500.use both Indexation and Discount
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- Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500 Calculate both Indexation and Discount Capital Gain. Later on you need to advise which one will give you a better result.Your grandmother gave you money to start saving for retirement. You have $7.500 to begin investing in a GIC. Consider all factors in the decision. In a brief paragraph, justify your decision, including a description of all factors that would affect That decTaryn would like to open a new business as an interior designer, to funds her ambition she sold some of the following assets: 1. Taryn sold a sculpture for $6,000 on 1 January 2020, she bought it on December 1994 for $1,500. Please calculate CGT on both Index method and Discount method and recommend which one is better with reference to Australian Tax Law. Advise the Capital Gain Tax Consequences for the above transactions,
- Assume that you’ve just inherited $100,000 and wish to use all or part of it to make a real estate investment. Would you invest directly in real estate, or indirectly through something like a REIT? Explain. Assuming that you decided to invest directly, would you invest in income-producing property or speculative property? Why? Describe the key characteristics of the types of income producing or speculative property you would seek. What financial and nonfinancial goals would you establish before beginning the search for suitable property? If you decide to invest in real estate indirectly, which type(s) of securities would you buy, and why?Anna Osinski acquired a townhouse unit in 2020 for $132,000 (land $10,000, building $122,000). She bought the unit in order to rent it. By the end of 2022, the undepreciated capital cost of the building was $113,900. In August 2023, Anna decided to live in the unit herself. At that time, similar townhouses were selling for $149,600 (land $13,200, building $136,400). Prior to August, her 2023 net rental income before capital cost allowance was $1,100. In September 2023, Anna purchased, for rental purposes, a residential condominium unit for $159,500 (land $16,500, building $143,000). Between September and the end of the taxation year, the condo earned net rentals of $1,000 before capital cost allowance. Required: Determine the Change to Anna's 2023 net income for tax purposes as a result of the above activity. Rents condo Rents townhouse Recapture Less CCA Answer is not complete. Taxable Capital gains: 0 Change to net incomeIn 2020, José purchased a house for $325,000 ($300,000 relates to the house; $25,000 relates to the land). He used the house as his personal residence. In March 2023, when the fair market value of the house was $400,000, 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 $ 300,000 b. Under MACRS, the cost recovery period for residential rental real estate is 27.5 years, and it is subject to the mid-month ✓ convention. c. The cost recovery for 2023 is $ Feedback x. Check My Work If personal-use assets are converted to business (or income-producing) use, the basis for cost recovery and for loss must be determined at the time the property is converted.
- Your grandfather left an inheritance for you of $100,000. However you can only drawdown on the investment as follows:In February of 2023 during the preparation of Julia's 2022 return, you explained to her options for usingn either the section 179 deduction or special depreciation for the purchase of her 2022 assets. In her first few years in business, she was learning so much, depreciation was too confusing for her. when you showed her the tax savings she would receive to benefit her for 2022 , she understood how this might change her choices for additional larger assets she may purchase in 2023. If Julia decided to use special depreciation for the assets purchased in 2022, Julia's refund would increase by what amount ?During 2020, Sandra Von Arb acquired a four-unit apartment building for $230,000. While it was her intention to operate the building as a rental property, one month after her purchase she received an unsolicited offer to purchase the building for $280,000. She accepts the offer. Should the $50,000 be treated as a capital gain or as business income? Justify your conclusion.
- Danielle has an apartment building that she bought in 1997 for 900,000. The total depreciation taken equals 200,000. In 2018 she traded it with a vacant parking lot having a fair market value of 800,000. This is considered a like-kind exchange. What is her basis in the parking lot?Anna Osinski acquired a townhouse unit in 2019 for $120,000 (land $10,000, building $110,000). She bought the unit in order to rent it. By the end of 2021, the undepreciated capital cost of the building was $103,500. In August 2022, Anna decided to live in the unit herself. At that time, similar townhouses were selling for $136,000 (land $12,000, building $124,000). Prior to August, her 2022 net rental income before capital cost allowance was $1,000. In September 2022, Anna purchased, for rental purposes, a residential condominium unit for $145,000 (land $15,000, building $130,000). Between September and the end of the taxation year, the condo earned net rentals of $900 before capital cost allowance. Required: Determine the Change to Anna's 2022 net income for tax purposes as a result of the above activity. Change to net income $ 0Answer the following question, show all working. Use a financial calculator if needed. DO NOT use excel: Your grandfather left an inheritance for you of $100,000. However you can only drawdown on the investment as follows:Years 1 – 3 $15,000 each yearYear 4 to 6 $10,000 each yearYear 7 $25,000Interest on the fund is 5%.a) What is the present worth of this inheritance?b) Due to high liquidity interest rate have dropped to 4%. What will be the impact on the present worth of this inheritance as a consequence of the market change?