Lonny Landman disposed of the following capital investment during 2021.

Sale of a luxury rental condominium in December, 2021 for proceeds of $1,075,000. Lonny had paid $708,000 in January, 2021 to acquire this property, but had been unable to rent it during the year. In order to facilitate the sale, Lonny took back a mortgage in the amount of $525,000 for 5 years @ 8%. The mortgage calls for annual capital and interest payments beginning in 2022. Lonny paid $59,000 in commission costs.

REQUIRED:

Calculate Lonny's taxable capital gain for the 2021 taxation year. (15 marks)