Mr Chan saw a shop in Ashfield advertised in the Domain section of The Sydney Morning Herald for $450,000. He decided to acquire the shop with the intention of leasing it out to interested entrepreneurs. The signed contracts were exchanged for the shop on 29 September 2007 and the purchase price was paid on 6 January 2008.

Discuss the capital gains tax implications of the following:

(a) the shop was sold on 30 June 2020 for $1,115,000

(b) the shop was sold on 30 June 2020 for $180,000

(c) extensive extension works were made to the shop at a cost of $85,000 between 31 March 2013 and 20 June 2013 as per a contract dated 31 March 2012. The extension works were paid for on 20 June 2013. Further capital improvements were made in September 2014 at a cost of $140,000. The shop was sold on 30 June 2020 for $1,500,000.

(d) a side annex to the shop was sold on 30 June 2020 for $180,000. The market value for the remainder of the shop at that date was $950,000.