is an artist. He sold some assets last week. He requests you to calculate the Capital Gain Tax (CGT) consequences of the following transactions:    He purchased the following items last eight months ago.   an antique cera

Individual Income Taxes
43rd Edition
ISBN:9780357109731
Author:Hoffman
Publisher:Hoffman
Chapter3: Tax Formula And Tax Determination : An Overview Of Property Transactions
Section: Chapter Questions
Problem 18DQ
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Benjamin is an artist. He sold some assets last week. He requests you to calculate the Capital Gain Tax (CGT) consequences of the following transactions: 

 

He purchased the following items last eight months ago.

 

  • an antique ceramic bowl (for $4,000),
  • An antique vase (for $5,000),
  • A colourful painting (for $15,000),
  • A TV sound system for his personal use (for $10,000) and
  • Shares of a reputed Company (for $6,000)

 

 

Last week he sold these assets as follows:

 

  • an antique ceramic bowl (for $6,000),
  • An antique vase (for $1,000),
  • A colourful painting (for $ 5,000),
  • A TV sound system for his personal use (for $9,000) and
  • Shares of a reputed Company (for $26,000)

 

Based on the legal provisions, discuss capital gain tax assets and calculate his net capital gain or net capital loss for the current tax year

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