CASE 1 Capital Gains tax Shirley is a single Australian resident for tax purposes. She has sold the following assets on 30 June 2021. Principal residence at Sydney Surry hills Purchased in November 1989 for $190,000 and sold it for $810,000 (Construction cost hasnt been claimed in her individual tax return). Stamp duty on purchases $1,900 Marketing (advertising) on sale $3,400 Agent commission on sale $23,000 Rental property at Sydney Collaroy Plateau Purchased on 1 July 2018 for $850,000 and sold it for $1,2000,000 (The property was built during 2000 with construction cost of $540,000. Capital works deductions have been claimed in her individual tax return each year up to disposal of the asset) Stamp duty on purchases $2,100 Built an additional garage on 1 August 2019 $41,000 (capital works not claimed) Repairing broken window on 10 July 2018 $600 Timber floor to concrete floor on 1 September 2018 $12,500 Agent commission on sale $16,000 Marketing (advertising) on sale $3,000 Legal expenses on sale $2,500 Holiday house at Sydney Palm Beach Purchased in August 2010 for $760,000 including stamp duty and sold it for $1,300,000 (The property was built during 1998 with construction cost of $340,000. Deductions related to construction have not been claimed) Total interests on mortgage paid $125,000 Marketing (advertising) on sale $4,400 Agent commission on sale $19,700 Shares Telstra Shares: Purchased on 4 April 2012 for $4,000 and sold for $19,000 Lihur Shares: Purchased on 12 September 1988 for $62,000 and sold for $41,000 Xerox Shares: Purchased on 1 September 1990 for $7,000 and sold for $37,000 LAW6001 Assessment 3: Case Study (Group) Page 5 of 10 Personal and other items (all sold during June 2021) Sold her car making a loss of $5,000 Sold some of her furniture and the overall loss was $18,000. Other information Shirleys gross Salary $121,000 (PAYG $45,000) Shirley has capital losses of $7,000 from sale of paintings carried forward from the previous years. Rental income from her Collaroy Plateau property from 1 July 2020 to date of sale is $24,000. Total allowable deductions in respect of this rental income for the year ended 30 June 2021 was $15,800 (excluding capital works). Required Advise the net capital gain for Shirley for the year ended 30 June 2021 by using the CGT method that provides the best outcome for her. Calculate the taxable income of Shirley for the year ended 30 June 2021. You must provide relevant cases and legislation