In 1979, a doctor who lived and worked in Sydney purchased a 20 acre parcel of rural land on the outskirts of the city for $100,000. Over the years, he used the property as a “hobby farm” for growing “fruit trees” and as a “weekend retreat” for relaxation. Recently, the surrounding area has become more developed and the property has increased in value substantially. The doctor has also recently run into financial difficulties as a result of a malpractice suit and he is considering selling the property. Advise him as to whether he would be required to include any amount in his assessable income as a result of the sale.

Answer rating: 100% (QA)

As per the provisions of Income Tax Assessment Act 1996 any form of receipt of capital nature ... View the full answer