QUESTION 2

Which one of the following statements is CORRECT?

(a) At the end of each income year, taxpayers must include in their assessable income any resulting increase in value of their CGT assets, regardless of whether a CGT event has occurred.

(b) A pre-CGT asset refers to a CGT asset acquired before 11:45am EST 21 September 1999.

(c) A capital loss from a personal use asset can only be used to reduce a capital gain from a personal use asset.

(d) Capital gains or losses of less than $10,000 from personal use CGT assets are disregarded by taxpayers.

(e) Capital gains tax is part of the income tax system with the capital gains tax provisions being contained in the Income Tax Assessment Act 1997.

QUESTION 3

Which one of the following assets is not a personal use asset (PUA)?

(a) A bicycle kept for private use.

(b) An option to acquire a personal use asset.

(c) A person's private home in the suburb of St. Lucia.

(d) A television set costing $2,500 used only for private use.

(e) A motor vehicle used only for private use.

QUESTION 4

Which one of the following assets is not exempt from CGT when disposed of?

(a) Shares held by a share trader as trading stock.

(b) A Harley Davidson motorcycle.

(c) A wedding ring acquired in 2001 for $1,800, which the taxpayer wore throughout their marriage but sold for $3,000 in March this year after getting divorced.

(d) A high-performance computer used exclusively for business purposes.

(e) A motor car acquired at auction in 2001 for $50,000 and sold in May this year for $150,000.