LAWS20060 TAXATION LAW OF AUSTRALIA INDIVIDUAL ASSIGNMENT TERM 1

QUESTION 3

c) Jamie and Olivia purchase a house in January 2006. Immediately they rent it out for 2 years while they travel overseas. In January 2008 they occupy the house and make it their main residence until they sell it in January 2018. They make a capital gain of $300,000. What are the CGT implications for Jamie and Olivia?                                                                            5 marks