Quiz Assignment Case Study Solution
The Total net worth of Len was around $500 in the first month of 2022 and from half of her ether she purchased a Non Fungible Token by using half of net worth, which would be $255 and the remaining ether would be 245. However, she sold Non Fungible Tokens at $15000. In this transaction, the capital gain amounting to $15195. Len transferred 5th of the Ether which value is around $120 from which $71 is the capital gain which is the one fifth of the Ether i.e. $49 has reached the value of $120, so the difference is a capital gain while the rest of the amount is a loss which is around $450.
Net Gain /Loss:
Total capital gain on sale of NFT = $15,195
Capital gain on transferred ether = $71
Loss set off against the Capital gains = $450
Loss from last year set off against the capital gains = $8,000
The net capital gain/loss = $15,195 (Total capital gain on sale of NFT) + $71 (Capital gain on transferred ether) + $450 (Loss set off against the Capital gains) – $8000 (Loss from last year set off against the capital gains).
The Capital gain = $ 6,816.
The total taxable income of Lan is reduced because there is a loss in last year and in this current year, so that’s why the total income tax of Lan become reduced, however if losing continuity was not there then Lan would have to pay a huge amount for the capital gains tax.
Part # 2.
Lottery winning tax rate = 31.2%
Lottery tax will be =$3744.
Interest income tax rate = 24%
Interest income tax= $48
Total base tax payable= Lottery tax + Interest income tax
Total base tax payable = $3744 + $48 = $3792.
So, the total base tax payable is $3792
1.Salary or wages
5-Australian Government allowances and payments like new start, Youth allowance, Jobseeker and Au study payments
Total Tax with Held
5-Total Current Year Capital gain
9-Net Capital gain
Total base tax payable= Lottery tax + interest income tax
Total base tax payable = $3744 + $48 = $3792
So, the total base tax payable is $3792.
If taxable equal or less than the thresh hold then there will not be any Medicare Levy and Medicare Levy Surcharge, so in case of the Lan, she would be payable of $3792 tax of Medicare Levy and Medicare.
Impact of the crypto-related activities on Lan’s tax payable
There is an impact of crypto-related activities on Lan was quite fluctuating because the net income of the Lan’s was reduced due to which the net income tax would spontaneously reduce. If the total income of crypto increase then the tax will be increased while if the total crypto income reduced then the total income tax on crypto-related activities increase. The crypto-related activities transections and others activities required the transaction fee and other taxes….
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