Kelly is a nurse working at the Canberra Hospital in the Maternity ward. She is also a single mother with a 4 years child named Lisa. kelly places Lisa into Childcare whilst she is working at a cost of $300 per week.

kelly is aqualifed midwife. she is often called late at the night by women who are in labour. She has a phone that uses 50% for wok purposes. she incurs $600 per month in mobile phone costs.

kelly owns a farm near cooma which is a profitable business. to improve the productivity of the farm she installed a new metal water tank which was completed on 1 july 2018. the tank cost $20000 to build and has an effective life of 10 years.

kelly decides to sell some of her other assets to provide working capital for the firm she sells an investment property that she has owned for many years in canberra to her fater for $75oooo(the market value of the porterty is $850000), incurring legal fees of $ 12000 in relation to the sale. The house cost $400000 when she purchased it in 2010. The contract for the sale . The house cost $400000when she purchased it in 2010. The contract for the sale in entered into on 25 June 2021 and the settlement of the sale is done on 26 July 2021. Just before she sold the investment property she replaced the guttering with the same materials for $8000.

kelly has a carry forward capital loss of $15000 from the 2015 income year from selling a rare book.

Required:

using relevant Legislation and case law, Plase answer the following question

in respect of the sale of the investment property:

1. indentify the CGT Event that happens

2.identify an CGT Assets

3.Explain the time of the CGT Event

4:expalin, in respect of the sale, Whether a capital gain is made or is disregerded

5:what are the capital proceeds( refer to any relevant modification rule that applies)

6. what amounts are included in cost base, and under which Element of the cost base

7. explain whether the carry forward capital loss of $15000 maybe applied to reduce any capital gain and if so how>

8. are there any dicount capital gains?

no need any calculations to work out any capital gain or loss