Rex acquired a holiday house on 1 April 1993 for $105,000 and incurred on that date non-deductible legal expenses, stamp duty and valuation fees of $5000. In March 1994, Rex incurred $1000 of expenditure to demolish the carport and $14000 in erecting a garage on the property. In June 1994, Rex incurred further expenditure of $3000 in legal expenses to oppose the construction of a nearby hotel that would adversely affect his property's value. On 30 June of each year of ownership, Rex paid council rates of ($5600 total) and on 31 March of each year he paid annual interest payments totaling $18000. In Sept 2014, the house was sold for $190,000 and Rex incurred real estate agent fees of $4000 on the sale.

At no time was the holiday house used for any income producing purposes.

a) determine the Capital Gain Tax position in relation to the disposal of Rex's holiday house