William Richardson was the Chief Executive Office of Auto Parts Pty Ltd. He wanted to downsize his main residence to buy a smaller home since his children had grown up and moved out. He came across a duplex for sale in Paddington on realestate.com.au on 15 December 2019. The duplex comprised two three-bedroom homes that share a common central wall and had two separate titles that each can be individually owned and sold.

William attended an auction for Paddington property on 1 January 2020 and was impressed by it. With a bid price of $2,500,000, he was successful, and signed a contract to settle the purchase within 31 days. The property was settled on 1 February 2020.

William immediately placed his Chatswood home on sales. This is the only property he owned and declared as his main residence since the day he brought it on 1 April 2015 for $700,000. He sold this property for $1,800,000 under a contract which settled on 1 November 2020.

William moved into the right unit of the Paddington duplex on 1 February 2020 and declared it as his main residence. The left unit of the duplex was left to his oldest son who lived there rent-free. However, on 30 June 2022, William was posted to Perth for work by Auto Parts Pty Ltd. So, he rented the right unit of the duplex out to a tenant for $5,000 per month until he returned home upon the cessation of his posting on 1 June 2023.

William lived in the right unit of the duplex until he sold the entire duplex for $3,200,000 on 30 June 2023. Agents fee for this sale was $45,000 and solicitors conveyance fees were $12,000.

The following outgoings were incurred in relation to the Paddington property:

Stamp duty at the time of purchase was $120,000

Legal expenses on purchase amounted to $8,200

The cost of obtaining and registering a mortgage (loan) of $700,000 on the property

was $1,500

Monthly interest payments on the mortgaged loan $2,700

Monthly local government rates (taxes) on the property $600

Before moving into the property, internal walls were painted (costing $12,000) and

the balcony railing was replaced (costing $25,000)

William sold the following assets on 10 October 2022:

- Collection of stamps purchased on 17 November 2000 for $600 and sold for $12,000

- Car acquired on 5 May 2008 for $80,000 and sold for $5,000

- Vase from Victorian era purchased on 3 March 2001 for $9,500 and sold for $500

because it turned out to be a fake.

Required:

In your report, you are required to provide justifications for your answers AND make reference to relevant statutory provisions, cases and /or rulings.

1) Advise William on the tax treatments arising from selling the Chatswood property for the 2020/2021 tax year.

2) Advise William on the tax treatments (if any) arising from the above transactions for the 2022/2023 tax year.

3) Calculate Williams taxable income for the 2022/2023 tax year.