Raoul purchased an income-producing asset for his business in January 2018 for$82?000. Raoul sold this asset for$50?000January 2020. During the years that he held this asset, Raoul claimed deductions for capital works for this asset of$10?000. What is Raoul's capital gain or loss for the 2020 tax year?

Question

Quizplus · Accepted Answer

Raoul's capital loss is calculated by subtracting the sale price ($50,000) from the adjusted base cost of the asset ($82,000 purchase price minus $10,000 capital works deductions = $72,000). This results in a capital loss of $22,000.

Raoul Purchased an Income-Producing Asset for His Business in January