- 5 Marks
PT – Nov2019 – L2 – Q5a – Taxation of Capital Gains
This question asks to compute the capital gains tax payable on the disposal of a land asset.
Question
Mamavi Dekey (Mamavi) purchased land in Ho in the Volta Region for a cost of GH¢200,000 in 2010. In 2011, she spent GH¢8,000 for grading the land. In March 2019, she spent another GH¢10,000 to reshape the land with the intention to sell it. Mamavi engaged Kobina Ebo, a Valuer, in June 2019 to value the land, and he charged GH¢2,000. In July 2019, she placed an advert at ‘Ho Bankoe FM’ on the sale of the land and paid GH¢1,000. In October 2019, she sold the land through an agent for GH¢300,000 to Kalika, and the agent’s commission was 2% of the sale value. Mamavi also paid GH¢600 for stamp duty and legal permit for conveyance of the land to Kalika.
Required:
Compute any tax payable.
(5 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Asset Disposal, Capital Gains, Land Sale, Tax computation
- Level: Level 2
- Topic: Taxation of Capital Gains
- Series: NOV 2019
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