Non wasting chattels

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May 26, 2021 at 1:56 pm #621821
rona123
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Hello sir
My question is if we have sold a non wasting chattel for 6200 and bought it for 5800 and incurred 300 legal cost…
Will it considered as the category for which 5/3 rule applies or (5800+300)=6100 or Normal Computation applies…?
May 26, 2021 at 5:26 pm #621853
Tax Tutor
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The 5/3 rule simply computes the MAXIMUM gain – if as in your example the ACTUAL gain is lower then the actual gain will apply – have you used the study notes and lectures?
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