Ashley bought her home in Morningside under a contract dated 9 August 2018 for $760,000. She immediately rented the property out to tenants while she continued to live at home with her parents in the outer suburbs.

On 12 August 2020, Ashley asks her tenants to vacate the Morningside rental property so that she can live closer to the city and her work. Ashley moved into the Morningside property on 12 August 2020 and occupied it as her main residence from that date. The market value of the property on that date she moved back in was $850,000.

On 10 May 2021, Ashley sold her Morningside property for $930,000. Sales commission paid to a real estate agent who co-ordinated the sale of the property totalled $29,800.

REQUIRED:

Calculate Ashley's net capital gain or loss in respect of the sale of her Morningside residence on 10 May 2021 for inclusion in her 2021 tax return. Show all workings.

Ashley does not have any capital losses either in the current year or from any prior years.

Please note that marks will be deducted if students include extra items in the cost base that should not in fact be included.

Please quote appropriate sections of the ITAA (1936) or ITAA (1997) in your answer. Please round all calculations to the nearest whole dollar.

NOTE - Number of Days:

There are 734 days from 9 August 2018 to 12 August 2020 There are 272 days from 12 August 2020 to 10 May 2021 There are 1,006 days from 9 August 2018 to 10 May 2021