Sandra’s Other Property (the Brisbane property) On 1 January 2015, Sandra was gifted a property in Brisbane (where she was working at the time) from her mother. At the time, the market value of the property was $750,000. Stamp duty and legal fees payable on this property was $40,000. She rented out this property immediately. On 1 January 2016, she paid $4,000 for this house to have some of its rusty windows replaced. Sandra moved into the Brisbane house on 1 January 2020, when it was worth $1.1 million. From that point she treated it as her main residence for tax purposes. She paid $10,000 in legal fees during April 2020, when the local council claimed (unsuccessfully) that a portion of the house’s land belonged to them. She then built an extension in November 2020 at a cost of $100,000.

On 1 January 2022, Sandra sold this Brisbane house in exchange for the buyer giving her:

• $1,300,000 in cash;

• Jewellery worth $30,000; and

• Taking over her mortgage of $100,000.

In February 2022, Sandra sold some shares for $20,000. She had inherited these shares three years ago from her uncle. He had bought them in 1983 for $1000 and, at the time of his death, they were worth $40,000. Required. Supporting your answers with cases and legislative authority:

Discuss the CGT consequences of the sale of Sandra's Brisbane property and the sale of the inherited shares, including calculating her Net Capital Gain from these sales (10 marks).