James purchased a holiday house for $280,000 in a contract that was signed on 30 January 1995 and settled…

James purchased a holiday house for $280,000 in a contract that was signed on 30 January 1995 and settled…

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James purchased a holiday house for $280,000 in a contract that was signed on 30 January 1995
and settled on 5 April 1995. He sold the property for $340,000 in a contract that was signed on 30
March 2022. The expenses James has incurred in relation to the property are outlined below. The
property was only used for private purposes, so none of these expenses have been claimed as a
tax deduction.
Date
5 April 1995
5 April 1995
15 August 1997
12 June 2001
Details
Stamp Duty on purchase
Conveyancing fees on purchase
Bathroom renovations
Construction of new pergola
Interest on loan over the period of ownership
Council and Water Rates over period of ownership
Real estate agent fees
Conveyancing fees on sale
a) Calculate the capital gain or loss James has made on the sale of the property
30 March 2022
30 March 2022
Amount
$
$
8,275
875
$
25,000
$ 11,800
$ 198,775
$36,780
$ 18,300
2,675
LA
$

Expert Answer:

Answer rating: 100% (QA)

To calculate the capital gain or loss we need to determine the cost
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