Question 1

Anne Cohen is an Australian resident individual for tax purposes. During the 2021-22 income year, she disposed of the following assets:

1. Apartment

On 15 January 2022, she entered into a contract to sell an apartment in Rokeby for $300,000. She had leased this apartment to tenants during the entire period of her ownership. The property was purchased for $120,000 in August 1982, and in June 1990 she spent $20,000 to renovate the kitchen and bathroom. When she sold the property, the real estate agency charged her 5% of the selling price for attending to the sale. The property settled on 3 July 2022. 2. Painting On 30 May 2022, she sold a Vermeer painting to an Art Gallery for $32,000. She purchased the painting in March 2002 for $22,000.

3. Antique car

On 14 November 2021, she sold her 1964 Aston Martin to a dealer for $150,000. She purchased the vehicle in July 2000 for $100,000 and has only used it on weekends during the local vintage car rallies.

4. Shares

On 15 June 2022, Anne sold shares in BNZ Bank Ltd (an Australian listed company) for $10,000. She purchased the shares on 20 July 2021 for $6,000. She incurred brokers' fees of $300 when she bought the shares and $500 when she sold them. Anne has a capital loss of $5,000 carried forward from the sale of shares in the income year ending 30 June 2020 and a further capital loss of $1,000 from the sale of an antique table in the income year ending 30 June 2019.

Required:

Showing ALL your calculations and referring to ALL relevant sections in the Income Tax Assessment Act 1997, calculate Anne's net capital gain for the year ending 30 June 2022. Please note that marks will be deducted for any calculations or section references that are not included in your answer.