What are the relevant income tax

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Reference no: EM133412572

Case: Jones Enterprises Pty Ltd had recently purchased a house and property in Paddington as an investment, from a married couple, for $800,000 in October 2021. The house was badly run down, so the CEO decided that Jones Enterprises Pty Ltd should carry out work on it to improve its resale value. Jones Enterprises Pty Ltd accordingly carried out work on the property to replace old fences (cost $3,000), repaint the house (cost $4,000) and replace the mouldy ceiling in every room and replace several decaying walls (cost $25,000). Jones Enterprises Pty Ltd also installed under floor heating in the bathroom and bedrooms (cost $8,000). On 1 April 2022, Jones Enterprises Pty Ltd entered into a contract to sell the property to Henry Jones' long-time best friend Abner Ravenwood for $1 million (the market value of the property is $3 million).

Question: What are the relevant income tax and/or capital gains tax implications in relation to the sale of the Paddington property to Abner Ravenwood (Australian Tax Law Implication) ?

Reference no: EM133412572

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