income taxation

Jason arrived and settled in Noarlunga with his parents on 1 July 1990 with a permanent intention to remain in Australia. He continued to live in Noarlunga, and worked as a private school teacher until 2019. He then decided that as he was 55 years of age, he would retire from the private school. He wanted to set up a business to use his high calibre teaching skills and knowledge that could be marketed widely through the selling of electronic teaching resources. Jason determined that a niche market for his electronic teaching resources would be best explored in China. Accordingly, Jason travelled to Beijing on 1 July 2020 to market his teaching resources, to network and find a distributor. Jason was granted a special visa for a fixed 2-year period that would not be renewed again, requiring Jason to return to Australia. However, Jason is very happy with the period of time granted to him to market his business, and he has no intention of re- applying for another visa as his parents are senior citizens and as the only child he believes he has a duty to support them in their senior years. Jason found a very nice apartment that he decorated with personal belongings, and it was within walking distance to his work, and he opened a bank account and joined the chess and basketball clubs nearby. Jason visited his mother and father in January 2021 for two weeks. His family visited Jason in Beijing for a month during March 2021. Jason looks forward to returning to care for his family in Australia in a years' time. Required You are required to advise whether Jason is considered to be a resident of Australia within the meaning of that term in subsection 6(1) of the Income Tax Assessment Act 1936 (ITAA 1936) for the income year ended 30 June 2021. Consider all of the four tests of residency for an individual. QUESTION 3 Part 2 (10 marks) 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 $1 1,000, 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