When Sandy got married on October 30, 2011, she moved out of the house she had owned and lived in since September 30, 1996. She immediately rented the house out and sold it in December, 2017 for $445,000. She bought the house for $210,000. Sandy DID NOT file a no change of use election with CRA.

1. If there was no principle residence exemption, what would be Sandys capital gain and taxable capital gain when she sold the house? (2 marks)
2. Given that there is a principle residence exemption, calculate the portion of the capital gain is exempt? (3 marks)
3. Calculate portion of the capital gain is not exempt? (2 marks)
4. If Sandy marginal tax rate is 50%, what would be the tax payable on the non-exempt portion of the capital gain? (3 marks)