**This Question related to Australian Taxation Law**

***Could you please answer the question according to australian taxation law?****

Question 7: Required: Advise Jacinta regarding whether what amounts are deductible as repairs (4 marks). Jacinta owns a rental property that she has rented out for the last 10 years. In the current tax year she spends money on the following items on/in her rental property: The concrete driveway was damaged by the previous tenants. As a result, the current driveway had to be removed and a new concrete driveway laid cost of $50 000. She had been presented with the alternative option of repairing it for $15 000, but she decided against it as a patched up driveway would be less aesthetically pleasing. One of the wardrobes had broken doors due also to damage from the previous tenants. Two new doors on this wardrobe, made from the same material as the original wardrobe doors, cost $700.

Question 8: Required: Describe and calculate, citing sections, the CGT consequences of Trish selling her rental property. You are not required to discuss the application of the 50% CGT discount, or of any potential impact of Division 43 ITAA 1997 (4 marks). Trish purchases a rental property in 2008. The details are as follows: She purchases it in 2008 for $300 000 from her sister. Its market value at the time is $400 000. She agrees to take over the $150 000 mortgage that her sister had on the house. She pays stamp duty of $15 000, and legal fees of $1000 at the time of acquisition. She pays $10 000 in interest during the time she owned the house. In 2015 she extended the house at a cost of $80 000. She sells the house in September 2020 in exchange for the buyer (her work colleague) giving her $800 000 in cash and $30 000 in shares. However, after the sale was complete, Trish had to give back the buyer $50 000 due to the land size being knowingly misrepresented on the sale documents. The house was rented out for the full period of its ownership.