yler owned a non-residential building, purchased in 2019, the original cost of which was $500,000, plus $250,000 for the cost of land. The UCC value of the building was $390,000, and the land and building were sold for $920,000 in 2022. The split the taxpayer used between land and building was $320,000 for the building and $600,000 for land.

(i) What are the initial tax implications of this transaction that Tyler made? (4 marks)

(ii) What are the tax implications of the transaction once you, a tax specialist review this sale by Tyler?