Income taxition law - Essay Example
Any household required to pay tax on gains that result from disposition of financial and real property2. Whether the gains are speculative, from business income or passive, from capital income, they are subject to tax. On the other hand, investors may make capital losses when the proceeds realised from asset disposal are less than the costs of asset acquisition. Capital gains are only realised when assets are disposed, and not when they are leased. From the information that is provided, the net capital gain for Chloe from the sale of shoe manufacturing factory premises is $1,570,000. This is calculated by subtracting the costs incurred in the acquisition of the factory premises from the proceeds realised from sale of the factory premises as shown.
