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William, an Australian resident, passed away on 7 November 2019. In his will he left...

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Accounting

William, an Australian resident, passed away on 7 November 2019. In his will he left his home in Bendigo to his son Paul, who lives in Melbourne. William had originally purchased the home in May 1983 at a cost of $90,000 and had lived in it ever since. A market valuation at the date of Williams death showed the property was worth $520,000. As Paul didnt want to move from Melbourne to Bendigo, he put the house on the market and sold it on 20 January 2021 for $460,000. The house was vacant from the time of Williams death until it was sold. William also owned a house in Mulwala on the Murray river which he purchased for $110,000 on 10 June 1998. This was also left to Paul and at the time of Williams death it had a market value of $380,000. The house was used by William as a holiday home until he died in November 2018. Paul decided to keep this house to use for his family holidays. After a while, Paul decided the travel from Melbourne to Mulwala was too far and the cost of keeping the holiday home too much so he sold the house on 30 May 2021 for $420,000. Required: Advise Paul of the taxation consequences of the above transactions. Amounts are given for illustration purposes only, you are not required to calculate any capital gains tax liability

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