Realisation of Assets – NBC Institute

PT – April 2022 – L2 – Q5b – Taxation of Capital Gains

Explain the circumstances under which an asset is considered realised for taxation purposes.

Question

A gain made by a person from the realisation of an asset is the total amount of consideration received for the sale of the asset less the cost of the asset at the time of realisation.

Required:
When is an asset realised? (5 marks)

Answer

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Tags: Capital Gains, Realisation of Assets, Taxable Events

Topic: Realisation of Assets, Taxation of Capital Gains
Series: APR 2022

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 – April 2022 – L2 – Q5b – Taxation of Capital Gains

Explain the circumstances under which an asset is considered realised for taxation purposes.

Question

A gain made by a person from the realisation of an asset is the total amount of consideration received for the sale of the asset less the cost of the asset at the time of realisation.

Required:
When is an asset realised? (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Gains, Realisation of Assets, Taxable Events

Topic: Realisation of Assets, Taxation of Capital Gains
Series: APR 2022

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: Realisation of Assets

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PT – April 2022 – L2 – Q5b – Taxation of Capital Gains

Explain the circumstances under which an asset is considered realised for taxation purposes.

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 – April 2022 – L2 – Q5b – Taxation of Capital Gains

Explain the circumstances under which an asset is considered realised for taxation purposes.

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.

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Question Tag: Realisation of Assets

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PT – April 2022 – L2 – Q5b – Taxation of Capital Gains

Explain the circumstances under which an asset is considered realised for taxation purposes.

You're reporting an error for "PT – April 2022 – L2 – Q5b – 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 – April 2022 – L2 – Q5b – Taxation of Capital Gains

Explain the circumstances under which an asset is considered realised for taxation purposes.

You're reporting an error for "PT – April 2022 – L2 – Q5b – 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"

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