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This topic has 2 replies, 2 voices, and was last updated 1 year ago by JillyB.

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March 3, 2023 at 9:38 pm #680069
maximus07
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In case when we have DP more tha 6000 and Cost less than 6000.
We have (Gross DP – 6000)x 5/3
What does gross DP means?
Does it means Disposal proceed plus cost of disposal or selling?
March 4, 2023 at 2:29 pm #680111
maximus07
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On 6 October 2021 Jorge sold a painting for £6,400. The painting had been purchased on 18 May 2006 for £2,200. Jorge incurred selling fees of £350 on the disposal.
Here we are taking
Gross DP as 6400 and 6400-6000 x 5/3
Should we take Gross DP as 6400+350=6750 as we will add back selling expense as it is gross dp?
Please help me with this confusion.
March 5, 2023 at 11:59 am #680163
JillyB
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gross disposal proceeds are what they would have received before any expense of sale
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