Required: Discuss the CGT consequences all 4 of the factual scenarios below. You are not required to discuss the application of the 50% CGT discount, or the impact of Division 43 of the ITAA 1997. For part (iii) also discuss any other tax consequences due to the sale of the computer server. Please cite authority. i) Allison bought her first home for $600,000 on 1 December 2021 and immediately moved into it. She paid stamp duty of $40,000. On 1 December 2022 she then moved in back with her parents and rented out her house. She sold her home on 30 November 2023 for $750,000. ii) Dave ran an antique shop business as a sole trader. He purchased an antique desk to be used as trading stock for the store for $5,000, which was then sold to a customer for $10,000. iii) Lara, who operates as a sole trader, bought a computer server for her business in 2020 for $1 million. She depreciated it for tax purposes at $100,000 a year for 3 years, and then sold it for $500,000. iv) In December 2022, Roger inherited a house from his uncle. The uncle had purchased it for $500,000 in June 2000, and had used as his main residence for the full time he owned it. Its market value at the time of the uncle's death was $1.2 million. Roger sold the house in January 2024 for $1.4 million.
Required: Discuss the CGT consequences all 4 of the factual scenarios below. You are not required to discuss the application of the 50% CGT discount, or the impact of Division 43 of the ITAA 1997. For part (iii) also discuss any other tax consequences due to the sale of the computer server. Please cite authority.
i) Allison bought her first home for $600,000 on 1 December 2021 and immediately moved into it. She paid stamp duty of $40,000. On 1 December 2022 she then moved in back with her parents and rented out her house. She sold her home on 30 November 2023 for $750,000.
ii) Dave ran an antique shop business as a sole trader. He purchased an antique desk to be used as trading stock for the store for $5,000, which was then sold to a customer for $10,000.
iii) Lara, who operates as a sole trader, bought a computer server for her business in 2020 for $1 million. She
iv) In December 2022, Roger inherited a house from his uncle. The uncle had purchased it for $500,000 in June 2000, and had used as his main residence for the full time he owned it. Its market value at the time of the uncle's death was $1.2 million. Roger sold the house in January 2024 for $1.4 million.
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