Chapter 20 - Computation of gains (Special rules) Flashcards
1
Q
What is the formula for a part disposal?
A
cost x (A/A+B)
A= proceeds of part disposal B= Market value of remaining asset
2
Q
What is the expected life of a wasting chattel?
A
Not exceeding 50 years
3
Q
What is the expected life of a non-wasting chattel?
A
more than 50 years
4
Q
What kind of chattel are plant and machinery?
A
Wasting chattels
5
Q
What is the rule for assets bought for less than 6k and sold for less than 6k?
A
Exempt
6
Q
What is the rule for assets bought for more than 6k and sold for less than 6k?
A
Sale price deemed 6k
less: Cost
7
Q
What is the rule for assets bought for less than 6k and sold for more than 6k?
A
Lower of…
Normal CGT calc
or
5/3 x (Gross sale proceeds - 6K)
8
Q
What is the rule for assets bought for more than 6k and sold for more than 6k?
A
Normal CGT calc
9
Q
What kind of chattels are exempt from CGT?
A
Wasting chattels
