1. Calculate the net capital gain for Sonia in relation to the following events for the

income year ended 30 June 2021 and advise of the impact on taxable income. Where

possible, minimise the possible tax liability. Provide a full explanation citing relevant

statute law and case law to support your answers.

Sonia's father passed away on 21 February 2020, and in his will, he left everything to

Sonia. This was essentially his family home, an investment property, household effects

and his car. Sonia decided to sell all the assets that she inherited. Details of the sales are

as follows:

House - Sonia's father purchased the family home in 1990 for $135,000 and there

were $5,000 in costs to buy and register the home in his name. Its market value at the

date of her father's death was $800,000. Sonia sold the home in October 2020 for

$835,000 and selling costs were $15,000.

Household furniture and goods - The cost of these was in the order of $11,000, and

Sonia sold them for $12,500 in July 2020.

Dad's Alpha Romeo - Sonia's father had purchased a new Alpha Romeo in 1990 for

$46,990 which was the drive away price. Sonia sold it for $9,990 in August 2020.

Investment Property - Sonia's father purchased an investment property for $95,000

as shown in the contract entered into, dated March 2001. Fees on purchase of $5,000

included stamp duty, legal fees, conveyancing and transfer fees and borrowing

expenses. The property's market value at the date of her father's death was $300,000.

She entered into a contract to sell the property on 1 June 2021 for $320,000, and she

will receive this money on settlement in August 2021. Selling costs of $4,000

included commission and legal fees and conveyancing fees.