Question 1:Geoff operated a small coffee supplies shop for seven years as a sole trader
Question 1:Geoff operated a small coffee supplies shop for seven years as a sole trader. On 2 May 2020 he sold the business for $400,000 and made a capital gain of $100,000. Geoff had prior year capital losses totalling $20,000. Assuming that all the conditions of ITAA97 Subdiv 152-A are met and Geoff chooses the CGT discount method for determining his capital gain, calculates his net capital gain for the financial year ending 30 June 2020.
Question 2: On 1 April 2020 Andrew received a restored Ford Mustang from his employer Winc Pty Ltd, an IT Business, as part of his salary package. It cost $30,000.00. The lease and running costs are $1050 per month, paid to Classic Cars Pty Ltd. During the FBT year ended 31 March 2020 it traveled 16,000 km, of which half was for business. Explain and calculate the tax consequences of this arrangement, with appropriate references to the relevant law.