Case Study about the Capital Gains Tax

In the given case, Dave Solomon age 59 is planning to get retired at an age of 60. He has decided to plan out his assets in the best possible way so that he has enough money at the time he gets retired. With an intention to save maximum amount available with him at the time of retirement, he decides to collect $1,000,000. HE decides to rent a city apartment and withdraw the tax free amount that he has saved in the superannuation fund for the retirement purposes. He was living in St Lucia from the past 30 years. He in order to raise the money that he has decided he plans to sell out his home through an auction. He conducts and auction and sells the house for $850,000 which has cost him $70,000, 30 years back. During the auction process, Dave has forfeited $85,000 from one of the customer, who first agreed to buy the house but after he fails to meet out his commitment. In this process Dave has paid $15,000 to the agent who has helped in fetching the right customer for the process. Cons idering all these points, Dave has made profit of $850,000 for the sale transaction. A person is not required to pay any capital gain tax on the profit that the person has earned on the sale of his residence. The exemption that has been given in the Australian tax laws is applicable only on the property in which the person is living or residing into. Thus, a person is required to pay the capital gain tax only on the property that has been earned by the person only on the property that has been held by him as an investment. In the given case, Dave has been living in his house located at ST Lucia which he has sold for $850,000. Being this property is the only in which Dave is living from past 30 years. Thus, in light to the above provision, being a property which has been used by the person is his own residence does not attract capital gain tax. Thus in that case, the capital gain earned by Dace worth $850,000 is not eligible for capital gain tax. As per the Australian tax laws, a person is not eligible to pay any capital gain tax liability arising on the profit that he has earned on sale of personal and collectible assets. In case of personal and collectible assets we have a separate classification which would be used for such taxation and thus the same in no case should be mixed with the provision of normal capital gain tax laws. The collectable and personal asset in this case includes art work such as drawings, paintings, photographs etc., jewellery, antiques, coins etc. In the given case, the painting of pro hart that has been sold by Dave would be covered in the definition of personal and collectible assets and thus the profit worth $110,000 that he has earned on such sale would be covered under the separate category other than capital gain. A person is not eligible to pay any tax liability on the gain that he has earned on sale of personal assets. The personal assets in this case includes car, resident property etc.   In the given case, the assessee sold motor cruiser for $60,000 which he has purchased for $110,000. In light to the above provision, Dave is not likely to bear any capital gin tax from sale of his personal assets. Although, Dave has incurred loss on the above transaction, thus being the gin is not taxable, the loss so incurred by Dave would also not be carried forward or set of from any taxable capital gain. Dave during the year has taken a loan of $70,000. He has utilized the sales proceeds on purchase of shares which he has sold during the year for $80,000. On this sale, Dave is required to pay brokerage and stamp duty worth $750 and $250 respectively. In case of sale of shares, a person if carrying out the same a business, he would be eligible to bear the tax on ordinary income basis; else the income so earned would be taxable as capital gain. Dave in the above case has to bear interest cost worth $5,000 on the loan amount. While calculating the capital gain tax all the expenses that have been incurred in earning the profit on such sale would be allowed as deduction. However, the interest that the individual has paid on the loan amount that he has utilized for purchasing the shares, would not be allowed as deduction being the same does not have any direct link with generation of income. In this case, Dave made a profit of $9,000 on the transaction. The interest amount of $5,000 would not be allowed as deduction. Considering the above points, Dave during the period has earned the following as capital gain: Dave in the last year has a net capital loss of $10,000 that he has earned on sale of shares. The capital loss so incurred by Dave can be carried forward and will be reduced from the gain made in the current year. The amount that has been earned by Dave during the period would be used by him for meeting his retirement needs.   ATO. Gov, Statutory formula method for Car FBT taxation, viewed on 1 st June 2016. ATO. Gov, FBT Tax rate 2016, viewed on 1 st June 2016. ATO. Gov, Market Interest Rate 2016, viewed on 1 st June 2016. ATO. Gov, Collectables and personal use assets, viewed on 1 st June 2016.

Job analysis 1 Essay Example | Topics and Well Written Essays - 2000 words

Job analysis 1 - Essay Example Several studies have explored the close link between job analysis and company performance and conclude that when the analysed jobs suit the employees well, they perform well in their jobs, and this translates to improved company performance in general (Cascio, 1998). It is essential that a job analysis to accurately identify the jobholder’s knowledge, skills and abilities (KSA) because this would decide the operational effectiveness in the provision of quality performance of a worker (Safdar et al., 2010). Cascio (1995) claims that when organizations understand the KSA of their employees, it helps them plan for changes or create new jobs and recruit the qualified candidate accordingly so organizational goals are met. Cornelius et al. (1979) enumerated categories of job analysis methods. One is the task-oriented approach wherein each job is broken down into more basic units called tasks. The focus of analysis for this approach is the work activity itself. Another is the worker- oriented job approach where the unit of analysis is not the task but the human behaviours involved in completing the work. Jobs are described by the processes undertaken by the workers. Third and last is the abilities-oriented approach proposed by Fleishman (1972, 1975). This approach focuses on the underlying abilities and aptitudes of the worker – the qualities he possesses that make him suited for the job. For this particular job analysis project, it will fall under the abilities-oriented approach which corresponds to the competency-focused approach (Siddique, 2004). It will give special attention to competencies such as â€Å"interpersonal skills, conflict resolution skills, innovative thinking, flexibility, decision-making ability and self-motivation (Sherman et al., 1998; Dessler ,2003)† (Siddique, 2004, p. 226). That is why it is important to analyse the jobholder’s skills as it applies to her job. This job analysis is for a secretary/ administrative assi stant. The methods used were interviews and self-reports based on standardized questionnaires taken by the jobholder. These evaluation questionnaires were part of the jobholder’s human resource training conducted recently. Its purpose was to evaluate the jobholder’s skills and its compatibility for her job and her future aspiration to be part of the sales team. The jobs she is currently holding as secretary/ administrative assistant as well as the job she wants in the future in sales both need skills in customer relations. The method of interview with the jobholder initiated the job analysis. I spent one afternoon talking with the jobholder, asking semi-structured questions about her work. Soon, she revealed her own self-analysis which will later be reconciled with the job analysis and if she is in the right job. Summary of Interview Job Description The jobholder’s work as a secretary doubles as the administrative assistant to 2 General Sales Managers. Her job d escription includes assisting her supervisors and the entire sales team of 48 taskforce to manage office administration procedures. Her general administrative duties include correspondence, invoicing, advertisements, calculation of timesheets, petty cash and office equipment maintenance and a full spectrum of secretarial duties. She

Answering Poems Assignment Example | Topics and Well Written Essays - 500 words

Answering Poems - Assignment Example The oldest wood arises from a forest that has not faced exposure to deforestation for a long time hence chances that the wood has survived for a long time. It’s also important to note that the age of the wood significantly define the maturity and strength of the product. Interpretation of this in the world of humanity, incriminating evidence indicates that the depth of knowledge in an individual highly defines the identity of a person although this takes time to build. Frost enumerates the various significance of tree in the society. In his poem â€Å"A Young Birch" the value of tree widely play a significant role in defining life of man and other animals virtually depending on it (Tuten, et al,391). The tree has medicinal values to the society and although it takes time to nurture, it has inexhaustible application. Actions of people in the society highly influence the fate of the trees although some mutual relationship exists between both sides. The value of the trees relies on nature of care accorded to the tree and the length of time spared for nurturing to maturity. The beautiful serene environment and scene created by these trees is aesthetic. Uses of trees virtually find a place all over the daily life and various activities of man in as much as taking care of it may sound tedious and discouraging. Once taken care of and harvested, trees have unlimited use in the society. Critical analysis of the values of tree leaves no doubt that they remain complementary to each other. It remains a fact that wood finds use in any surrounding of man in terms of the items made from it. The bed, furniture, books and other essential products virtually come from wood and constitute the better part of human life. The poets express the unending value of trees which spread over the life of man for a long time. Just like the invaluable nature of knowledge in the life of an individual, survival of human being basically remain anchored on