- This topic has 2 replies, 2 voices, and was last updated 11 years ago by
.
- Posts
Hi, I am aware that the treatment for non wasting chattels is the following:
– Cost & proceeds less than 6000 then exempt
– Cost less than 6000 but proceeds more then ‘Normal calculation but gain is restricted to 5/3’
– Cost more than 6000 but proceeds less than 6000 ‘Deemed gross proceeds = 6000’
– Cost & proceeds more than 6000 then normal calculation.First of all is the above correct please? If so could you explain what is meant by ‘restricted to 5/3’ and ‘deemed gross proceeds = 6000’ please?
When cost is less than 6,000 but sale proceeds are more a normal gain is computed but is restricted to a MAXIMUM of:
(Gross Proceeds – 6,000) x 5/3
If cost is more than 6,000 but sale proceeds are less than 6,000 then one calculation of the loss is performed where we use 6,000 as the gross sale proceeds figure.
See the OT Course Notes page 96 for examples
- You must be logged in to reply to this topic.