During the current income tax year a taxpayer, Adele Ho, made a capital gain of $100,000 from the sale of land and a capital loss of $10,000 from the sale of shares. She also has prior year carry forward capital losses from the sale of shares that total $30,000. Adele elects to use the capital gains tax (CGT) discount method to determine her net capital gain. What is Adele’s assessable net capital gain for the current income tax year?   a. $60,000   b. $30,000   c. $15,000   d. $45,000

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
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  1. During the current income tax year a taxpayer, Adele Ho, made a capital gain of $100,000 from the sale of land and a capital loss of $10,000 from the sale of shares. She also has prior year carry forward capital losses from the sale of shares that total $30,000. Adele elects to use the capital gains tax (CGT) discount method to determine her net capital gain.

What is Adele’s assessable net capital gain for the current income tax year?

 

a.

$60,000

 

b.

$30,000

 

c.

$15,000

 

d.

$45,000

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