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On 2 November 1988, Bob Morgan purchased two hectares of land for $280,000 in the Yarra valley. On 20 March 2015, he sold one hectare of land for $220,000. (The remaining land was of equal value.)
The legal and other costs associated with the acquisition of the two hectares of land were $12,000, and with the disposal of the one hectare $2,000.
You are to consider the CGT implications both from the relevant sections (ITAA), rulings, etc. and from the values (if/where applicable). Calculate the capital gain for Bob arising from sale of the land for the 2014/2015 tax year. Detail discussion is required.
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