Personal Tax- Capital Gains
System
Posts: 100,534 🤖 Admin 🤖
Hello, I am really really struggling to understand why when a chattel is sold at a loss you replace the proceeds for £6000, why would you do this?
This is the question :
In October 2000 Ally bought a painting for £9,500, it was damaged new years eve so she sold it for 4,500 in february 06.
Why would you not just simply have proceeds of £4,500 and costs of £9,500 making a loss of £5000??? :oops:
This is the question :
In October 2000 Ally bought a painting for £9,500, it was damaged new years eve so she sold it for 4,500 in february 06.
Why would you not just simply have proceeds of £4,500 and costs of £9,500 making a loss of £5000??? :oops:
0
Comments
-
Re:Personal Tax- Capital Gains
It is just one of those rules for chattels to restrict the taxable gain.
Just one of those things to remember.
Paul0 -
Re:Personal Tax- Capital Gains
I think its only when proceeds is less than 6000 and you incurred a loss that there will be a deemed proceeds of 6000. Read again your notes to confirm this please....0 -
Re:Personal Tax- Capital Gains
Ooops sorry in that case proceeds should be 6000 (deemed). It's just one of the chattel rules.0