Question 2 (10 marks) Suppose the buyer from Question 1 decided to keep the Sydney home (land value: $2M) and rent it out as an investment property while buying the vacant land in Orange, NSW. Answer the following questions from your client: a) Explain the CGT implications to the client arising from this decision. Provide any relevant advice on requirements for CGT under tax law. b) Is it possible to treat this Sydney property as the principal residence for CGT (to retain the main residence exemption)? c) Is it also possible to treat this Sydney property as a principal residence for NSW land tax (to avoid land tax)? d) List the type of property related expenses that could be deductible to the client and support all suggestions from tax law. e) The owner periodically drives to Sydney to: Inspect the property, meet with the managing agent and perform routine maintenance. Would the travel costs be deductible against the rental income? Support your conclusions with relevant tax law sources.