Required: Discuss the CGT consequences of each of the following (citing authority). You are not required to discuss the application of the 50% CGT discount or the impact of Division 43 of the ITAA 1997 i) Nadine bought her first home (it was located in Melbourne) for $500,000 on 1 August 2021 and immediately moved into it. She paid stamp duty of $30,000. She then on 1 August 2022 bought a house in Sydney which she moved into and treated as her new main residence from that point in time. At the same time (on 1 August 2022) she rented out her Melbourne house, at which time it was worth $600,000. She then sold her Melbourne house on 31 July 2023 to her brother for $800,000, even though it was worth $900,000 at the time. ii) Keith bought his first home for $800,000 on 1 November 2021 and rented it out (he continued to live with his parents). He paid stamp duty of $40,000. He then moved into it on 1 November 2022, at which time it was worth $900,000. He then sold it on 31 October 2023 for $950,000.
Required: Discuss the CGT consequences of each of the following (citing authority). You are not required to discuss the application of the 50% CGT discount or the impact of Division 43 of the ITAA 1997
i) Nadine bought her first home (it was located in Melbourne) for $500,000 on 1 August 2021 and immediately moved into it. She paid stamp duty of $30,000. She then on 1 August 2022 bought a house in Sydney which she moved into and treated as her new main residence from that point in time. At the same time (on 1 August 2022) she rented out her Melbourne house, at which time it was worth $600,000. She then sold her Melbourne house on 31 July 2023 to her brother for $800,000, even though it was worth $900,000 at the time.
ii) Keith bought his first home for $800,000 on 1 November 2021 and rented it out (he continued to live with his parents). He paid stamp duty of $40,000. He then moved into it on 1 November 2022, at which time it was worth $900,000. He then sold it on 31 October 2023 for $950,000.
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