Lisa sold her home in Darwin (contract date September 2019, settlement December 2019), receiving $1,220,000 at settlement. This is after legal fees ($12,000), advertising ($2,000) and real estate commissions ($25,000) were deducted.

• Records indicate that Lisa purchased the property in 2002 (contract date January, settlement March) for $653,000. Legal fees, commissions and advertising of $8,000 were also incurred.
• Lisa moved in within 6 months, selling her former residence during that time.
• Over the ownership period, Lisa rented the property for three years beginning December 2010, with $65,000 of $120,000 in non-capital costs claimed against rental income. The property was valued at $890,000 at the time it began being rented.

Her earlier details may be incorrect. Lisa will confirm on Monday the exact details; however, can you review the impact on her position if instead of renting the property for three years, it was rented for eight year.

C.1 Re-assess the taxable capital gain (loss) on the sale of the home on the basis that Lisa rented the home for a period of eight years. Briefly justify your answer/show all workings.