Janet acquired an apartment in Sydney, under a contract dated 14 January 2014, for $490,000 cash payable on 14 March 2014 and a promise by Janet to pay an additional $51,000 on 14 March 2015. Janet planned to make the apartment available for rent immediately but was advised that the apartment could not be rentedout until the apartment’s internal walls were painted (cost $4,500) and the balcony railing was replaced (cost $9,000). After the work was carried out, Janet rented the apartment to a tenant in May 2015 for $550 a week.Janet had paid $19,000 in stamp duty, $1000 for a valuation and $700 fees to a lawyer on acquisition of the property. Interest on a loan to purchase the apartment was $900 per month for the first five years of the loan. On 10 February 2018, Janet entered into a contact to sell the apartment for $710,000.Explain the capital gains tax consequences of these transactions.
- RECOMMENDED!!ACC 317-Summarize the major benefits of forming a corporation
- RECOMMENDED!!ACCT 324-Drab Corporation, a calendar year S corporation,
- RECOMMENDED!!QNT 561 BUSSINESS-To prepare the statement of cash flows, accountants for Vinson
- RECOMMENDED!!MBA 641-Glass company manufactures glasses that it sells
- RECOMMENDED!!ACCT 151-Trego Company issued, on December 31, 2018