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Assignment 1: You should attempt both parts to this assignment Note: you should incorporate all sections of the various Acts/regulations where appropriate. Part 1: Case study Janet (taxpayer) residing in Australia is named as the sole beneficiary

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Assignment 1: You should attempt both parts to this assignment;Note: you should incorporate all sections of the various Acts/regulations;where appropriate.;Part 1: Case study;Janet (taxpayer) residing in Australia is named as the sole beneficiary of a;property (1.85 hectares) with a large homestead as a result of the death;of a relative on 7/10/2010. The property is not used for commercial;purposes and at the date of death, the property was valued at;$1.45million. Settlement took place on 21/12/2010. After moving into the;homestead shortly after taking ownership, she planned to take a one-year;trip which she had been planning for some time in late 2011. The taxpayer;felt that the homestead was far too large for her (she is single), applied to;the ATO for an exemption for ABN registration and some fourteen months;later (16/2/2012), she obtained council approval to subdivide the property;into three, with the intention of building three units, one she will take up as;her own residence, the other two will be sold. Work commenced some;weeks after approval and on 12th December that same year, the;taxpayer returned and moved into one of the apartments. The other two;were sold in March/April in 2013, one selling for $1.35m (24/3/2013), the;other for $1.45m (9/4/2013).;You are to consider the CGT implications both from the relevant sections;(ITAA), rulings, etc. and from the values (if/where applicable). Assume that;the blocks are subdivided equally. For each determination that you make;you should clarify. You should also clarify what Capital Gains and CGT is in;your answer (15 marks);Part 2: Question;Explain using examples and relevant sections of the act, what the;differences between Ordinary Income and Statutory income are. Use your;own examples (not from MTG or Barkoczy text) (5 marks);guide lines: www.ato.gov.au this case study fall in which section? CGT events. sec 110-25, sec 104-110. support from ruling point of view?section 118 &sec 140.give some case study NGUYENA VS TIMES. explain why normally people go for valuation?

 

Paper#79280 | Written in 18-Jul-2015

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