LSSU 592 Assignment

Question

 Joanne purchased a home in 2000 for $150,000. Joanne lived in the home, except for the following periods: 3 years from 2002-2005 and for 4 years from 2009-2013 when she was required to work in London. While in London she lived with her sister. Joanne did not rent her home while she was away. She did rent it out for 2 years from 2014 -2015 while she travelled the world.

In 2006, Joanne purchased a painting for $11,000 and a 1930 Penny coin for $5000. The painting was held in the business premises of her father. In October 2022 Joanne became ill and needed money for medical expenses so she sold the painting for $3000. She was told to hold on to her coin as it was rapidly increasing in value. In January 2023, Joanne sold her home in the city for $400,000 and then purchased another home in the country for $200,000.  Joanne passed away in February 2023 leaving all of her estate to her brother Ryan.

Advise the executor of Joanne’s estate of the CGT consequences in relation to the sale of Joanne’s assets (painting and the city home) and the bequest of the remaining assets to Ryan.

Research is needed. Mere reference to the textbook or the ATO website is not enough. Reference to legal authority, being legislation and/or cases and/or ATO rulings is required in your response.