Untitled Assessment item 2 - Problem solving question Part A Value: 15% Due Date: 20-Apr-2021 Return Date: 13-May-2021 Length: 2,500 words Group Assessment: No Submission method options: Alternative...

There is two assesment but you have to do assesment 3 part B. Part A is for part B. You need to write report in ILAC method and letter also


Untitled Assessment item 2 - Problem solving question Part A Value: 15% Due Date: 20-Apr-2021 Return Date: 13-May-2021 Length: 2,500 words Group Assessment: No Submission method options: Alternative submission method TASK The major assessment task for this subject is designed to be submitted in two parts to enable you to benefit from feedback provided on Part A (Assessment task 2). Assessment tasks 2 and 3 relate to the tax affairs of Bill. The information presented in this first task will be relevant, to both Part A and Part B, along with the feedback provided when your submission is returned. Bill owns and has operated a bicycle shop in a major regional town since 1 July 2011. He lives 15 minutes from town on 5 hectares with his spouse. The property is on two titles. The 4 hectare block has their home and was purchased in joint names. The adjacent 1 hectare has a large shed and workshop/studio apartment that existed when the blocks were purchased and in which they lived while building the house and was purchased only in Bill’s name. Both properties were purchased at the same time, on 1 November 2009, and the home was completed and they moved in on 1 December 2010. The annual gross turnover from the bicycle shop last year was $1,200,000 and he expects this to increase by around 10% in the current year. Each year he arranges for the storage of bicycles purchased, if required by customers, in the shed for pick up in the week before Christmas. Generally these start to be stored from July. In addition he has stored some second hand trade-in bikes acquired mostly in February to October which he drops off at the Mens’ Shed every month. These are reconditioned by the Mens’ Shed members and donated to charity. He has undertaken these activities since July 2015. During the current year he has undertaken an extension to the shop premises which was finished in April costing $200,000. This additional space will discontinue the need for storage away from the shop. This assignment has two parts, both must be submitted and your submission should adopt the ILAC decision model. Ensure you note relevant legislation, case law or other supporting information as well as any additional information you may require. The report should follow the style guide below. Each part has a different submission date. The Part A response is to be based on the data provided below under the heading Assessment item 2. Part A Question As a result of the additional storage space Bill is considering the option to sell the 1 hectare Charles Sturt University Subject Outline LAW505 202130 SM I Version 3 - Published 25 March 2021 Page 20 of 42 containing the shed and workshop/studio apartment. The property was purchased for $300,000 and Bill has made no improvements during the time he has held the property and while he borrowed 80% of the purchase price he has now repaid 60% of his borrowings. He neighbour who is a Real Estate Agent has indicated he believes he could sell the property for $500,000. Required Determine the tax consequences of the sale? (You are NOT required to calculate any possible tax payable but should provide some indication of the amount of any possible assessable component). Your advice is to take the form of a report (adopting ILAC style) which will form part of the client work papers and should include a recommendation based on the known facts provided above as well as identifying any additional information that should be requested prior to providing any advice to the client (15 marks) This assignment must be submitted through Turnitin. It is recommended that your name, student ID and page number are included in the header or footer of every page of the assignment. Further details about submission in Turnitin are provided in On-line submission. RATIONALE This assessment task will assess the following learning outcome/s: • be able to identify and explain the rules of law relating to taxation law topics covered in the subject. • be able demonstrate a capacity to engage in legal research. • be able to use legal research skills to apply the law to legal problems relating to taxation so as to reach a solution. • be able to analyse legal rules so as to differentiate between possible outcomes to the legal issues arising from novel fact situations. Covering topics 1 to 8, this assignment has been designed to ensure that students are able to identify and apply legislation, rulings and case law to the issues identified as well as demonstrate the ability to analyse the issues fully and apply this knowledge to a hypothetical, practical situation. Charles Sturt University Subject Outline LAW505 202130 SM I Version 3 - Published 25 March 2021 Page 21 of 42 M AR KI NG C RI TE RI A AN D ST AN DA RD S In a ss es si ng y ou r a ss ig nm en t t he m ar ke r w ill e xp ec t y ou to : • pr es en t a n es sa y th at is re ad ab le a nd co he re nt ; • us e ap pr op ria te la ng ua ge , c or re ct sp el lin g an d gr am m ar ; • id en tif y an d an al ys e re le va nt is su es ; • ex pl ai n an d ap pl y re le va nt ca se s, ru lin gs a nd le gi sl at io n; • re ac h a so un d an d w el l-r ea so ne d co nc lu si on ; • us e ap pr op ria te re fe re nc in g; a nd • de m on st ra te ti m e m an ag em en t s ki lls . Th e fo llo w in g cr ite ria w ill fo rm th e ba si s o f a ss ig nm en t o f m ar ks fo r t he p ro bl em so lv in g qu es tio n. Cr ite ria Hi gh Di st in ct io n Di st in ct io n Cr ed it Pa ss Fa il St ud en ts ar e re qu ire d to an sw er pr ob le m ty pe qu es tio ns in or de r to de m on st ra te : To m ee tt hi sl ev el yo u w ill ac hi ev e a cu m ul at iv e m ar k of 85 -1 00 % .A m ar k in th is ra ng e in di ca te st ha ta st ud en t: To m ee tt hi sl ev el yo u w ill ac hi ev e a cu m ul at iv e m ar k of 75 -8 4% .A m ar k in th is ra ng e in di ca te st ha ta st ud en t: To m ee tt hi sl ev el yo u w ill ac hi ev e a cu m ul at iv e m ar k of 65 -7 4% .A m ar k in th is ra ng e in di ca te st ha ta st ud en t: To m ee tt hi sl ev el yo u w ill ac hi ev e a cu m ul at iv e m ar k of 50 -6 4% .A m ar k in th is ra ng e in di ca te s th at a st ud en t: At th is le ve ly ou w ill ob ta in a m ar k of 0- 49 % . 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