So am I thinking along the right lines here? Would appreciate your help...
Sell house for 120,000
Value of property in 1986 - 25k
adjusted for inflation 25 x 1.713 = 42,825(this is from the Table of inflation from revenue - but it ends in 2004, do I use this??)
120,000 - 7000 selling expenses = 113,000
113,000 - 30,000 home enhancements = 83,000
83,000 - 42825 = 40,175 chargeable gain
tax due = 13,257.75
But then I have the piece about it being lived in for 30 years up till this year so how do I adjust the above calculation if we decide to rent it for 3 years now...?