Property Sale – NBC Institute

PT – May 2020 – L2 – Q5a – Taxation of Capital Gains

Computation of capital gains tax on the sale of a house by Papa Dekey in 2019.

Question

a) Papa Dekey purchased a house in the Madina area of Greater Accra Region in the year 2010 for GH¢400,000. The acquisition expenses incurred by the company amounted to GH¢50,000.

In June 2019, Papa Dekey sold the house for GH¢700,000 while the incidental expenses incurred were as follows:
Description GH¢
Agent’s Commission 10,000
Solicitors Fees 8,000
Advertising 3,000
Accountant’s Fees 10,000
Income Tax on Rent 6,000
Valuation Fees 20,000
Required:
Compute the Capital Gains Tax payable by Papa Dekey.
(5 marks)
Papa Dekey also sold for GH¢1,000,000 in September 2019, Ghana Government Securities
which cost GH¢800,000 in the year 2010. The incidental selling expenses amounted to
GH¢50,000 in respect of Government Securities.

Required:
Compute the Capital Gains Tax payable by Papa Dekey.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Acquisition Expenses, Capital Gains, Property Sale, Tax computation
Level: Level 2

Topic: Taxation of Capital Gains
Series: MAY 2020

TX – May 2019 – L3 – Q3A – Capital Gains Tax

Compute the tax on capital gains from a property sale and explain the concept of realisation of capital assets.

Question

a)
i) Anthony purchased a house in Koforidua at a cost of GH¢480,000 in the year 2011. In 2011, he spent GH¢24,000 to repair and renovate the house. In March 2018, he spent extra GH¢18,000 on renovation with the intention to sell the house. Anthony engaged a Valuer in June 2018, to value the building and the Valuer charged GH¢5,400.

In July 2018, he placed an advert on ‘Zuria FM’ for the sale of the building and paid GH¢1,800. During the same period, he sold the house through an agent for GH¢660,000 to Kwame Burger and the agent’s commission was 3% of the sale value. Anthony also paid GH¢1,500 for stamp duty and legal permit for conveyance of the building to Kwame Burger.

Required: i) Compute any tax payable. (4 marks)

ii) What constitutes realisation of capital assets? (2 marks)
i) Compute any tax payable. (4 marks)
ii) What constitutes realisation of capital assets? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Gains, Property Sale, Realisation of Assets, Tax computation, Taxation Act
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2019

PT – May 2020 – L2 – Q5a – Taxation of Capital Gains

Computation of capital gains tax on the sale of a house by Papa Dekey in 2019.

Question

a) Papa Dekey purchased a house in the Madina area of Greater Accra Region in the year 2010 for GH¢400,000. The acquisition expenses incurred by the company amounted to GH¢50,000.

Required:
Compute the Capital Gains Tax payable by Papa Dekey.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Acquisition Expenses, Capital Gains, Property Sale, Tax computation
Level: Level 2

Topic: Taxation of Capital Gains
Series: MAY 2020

TX – May 2019 – L3 – Q3A – Capital Gains Tax

Compute the tax on capital gains from a property sale and explain the concept of realisation of capital assets.

Question

Required: i) Compute any tax payable. (4 marks)

ii) What constitutes realisation of capital assets? (2 marks)
i) Compute any tax payable. (4 marks)
ii) What constitutes realisation of capital assets? (2 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Gains, Property Sale, Realisation of Assets, Tax computation, Taxation Act
Level: Level 3

Topic: Business income - Corporate income tax
Series: MAY 2019

Question Tag: Property Sale

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

PT – May 2020 – L2 – Q5a – Taxation of Capital Gains

Computation of capital gains tax on the sale of a house by Papa Dekey in 2019.

TX – May 2019 – L3 – Q3A – Capital Gains Tax

Compute the tax on capital gains from a property sale and explain the concept of realisation of capital assets.

PT – May 2020 – L2 – Q5a – Taxation of Capital Gains

Computation of capital gains tax on the sale of a house by Papa Dekey in 2019.

TX – May 2019 – L3 – Q3A – Capital Gains Tax

Compute the tax on capital gains from a property sale and explain the concept of realisation of capital assets.

Our offerings

Contact Info

Customer

Get In Touch

NBC Institute

Question Tag: Property Sale

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

PT – May 2020 – L2 – Q5a – Taxation of Capital Gains

Computation of capital gains tax on the sale of a house by Papa Dekey in 2019.

You're reporting an error for "PT – May 2020 – L2 – Q5a – Taxation of Capital Gains"

TX – May 2019 – L3 – Q3A – Capital Gains Tax

Compute the tax on capital gains from a property sale and explain the concept of realisation of capital assets.

You're reporting an error for "TX – May 2019 – L3 – Q3A – Capital Gains Tax"

PT – May 2020 – L2 – Q5a – Taxation of Capital Gains

Computation of capital gains tax on the sale of a house by Papa Dekey in 2019.

You're reporting an error for "PT – May 2020 – L2 – Q5a – Taxation of Capital Gains"

TX – May 2019 – L3 – Q3A – Capital Gains Tax

Compute the tax on capital gains from a property sale and explain the concept of realisation of capital assets.

You're reporting an error for "TX – May 2019 – L3 – Q3A – Capital Gains Tax"

Our offerings

Contact Info

Customer

Get In Touch

NBC Institute

admin