In year 1, Irene and her husband purchased a home in Toronto, Ontario for $500,000.

In year 4 they also acquired a cottage on Wasaga Beach, Ontario for a cost of $440,000.

In year 15 they sold both properties (home and cottage).

Proceeds from the sale of the house were $745,900, while proceeds on the sale of the cottage were $643,500.

REQUIRED: Using the principal residence example, determine the lowest capital gain (for both properties) that Irene and her husband can report in their tax return for Year 15.