Since 1997 Andreas and Cynthia have invested in various Australian shares
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Since 1997 Andreas and Cynthia have invested in various Australian shares

Statement of Advice 3 – Advice on net capital gains

Since 1997 Andreas and Cynthia have invested in various Australian shares. Cynthia acquired the shares in her own name whereas Andreas had his company Border Pty Ltd acquire his share portfolio. On 20 August 2021 both Cynthia and Andreas made a decision to dispose of their Australian shares and the proceeds and purchase prices information are as follows.


Other information

Cynthia has a capital loss of $600 carried forward from sale of painting during 2018.

Required

1) Advise both Cynthia and Andreas on the CGT consequences of their share sales.

2) Calculate net capital gains for both Cynthia and Border Pty Ltd the 2021/22 tax year. You must provide all methods available for her and choose the best method to minimise net capital gains.

Hint
Accounts & FinanceLong-term capital gains are taxed according to graduated thresholds for taxable income at 0%, 15%, or 20%. The tax rate on most taxpayers who report long-term capital gains is 15% or lower. Short-term capital gains are taxed just like your ordinary income. That's up to 37% in 2022, depending on your tax bracket. If your income is above a certain threshold – $200,000 if single...
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