Herman enters into a contract with Jake on 1 January 2016 to purchase a factory from Jake for $1 million. Herman pays Jake $800,000 and also transfers to Jake shares worth $200,000. Additional costs of purchase are: (a) legal fees $10,000, (b) stamp duty $50,000, and (c) tax advice on how to structure the deal $8,000. On the basis of that advice, the factory is purchased in the name of Herman’s family company.

Herman then uses the factory for income-producing purposes.

Soon after taking possession of the factory, Herman finds some of the walls need replacing because of white ants: cost $46,000.

In December 2016, the outside walls of the factory are repainted because the paint is peeling: cost $38,000 (Herman claims this as a tax deduction in his tax return for the 2016/17 year). In January 2017, Herman pays a landscape gardener $84,000 to beautify the grounds around the factory (trees, paths, etc.).

During his ownership, Herman also pays rates ($22,000), insurance premiums ($25,000) and interest on the loan taken out to finance the purchase of the factory ($33,000).

In March 2020, Jake is accused of forging title deeds and of fraudulently asserting ownership of the factory that he sold to Herman. In danger of losing the factory, Herman incurs $80,000 court costs to successfully defend his ownership.

In June 2020 Herman sells the factory for $2.5 million. To arrange the sale, he incurs advertising costs of $10,000 and legal fees of $50,000.

PREPARE A REPORT advising Herman on the CGT consequences arising from the transactions outlined above. In your report, particular attention should be given to explaining whether a capital gain or a capital loss was realized when the factory is sold? If a capital gain was realized, how much would be taxable?

could you be specific on the term "more information"?

country of tax is Australia.