Question
Sharna, a resident in Melbourne, purchased a three-bedroom house to live in with her family in May 2008 for $420000, which includes the price of
Sharna, a resident in Melbourne, purchased a three-bedroom house to live in with her family in May 2008 for $420000, which includes the price of the property and any incidental costs. She rented it out in May 2010 as she started a new business based in Sydney. The house was sold in May 2019 and Sharna received an amount of $860000 after deducting all the fees associated with the transaction. Assume she did not incur any other fees during the ownership period.
Determine if Sharna has made any capital gain from this CGT event. Show calculations and support with the relevant law provisions.
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