Question
Charlie owns a block of three hectares of land in Yarra Valley on which a house is situated. That property was purchased in 1990 for $250,000 for the land and $300,000 for the house. He moved into the property as his main residence as soon as practicable. He lived there until 1997 before he migrated to Canada. At that time the land is worth $350,000 and house is worth $270,000.
In 2000, Charlie bought a house in Canada where he resided. He continued to rent out his property in the Yarra Valley before it was sold in 2015. The property was sold for $800,000, being land of $450,000 and house $350,000.
Required
Advise Charlie on his tax implications relating to the Yarra Valley property.
You are required to cite the relevant legislation and case law.
Attachment:- Capital gains tax.rar