Jack bought a block of flats in December 2010 for $250,000 for residential investment purposes. In February 2011 he got married to his childhood sweetheart, Jill. Jill is a successful property dealer and the sole shareholder of Speculator Co, a company that has been buying and selling property for over 10 years. In 2015 Jack and Jill suffer from financial difficulties and reluctantly decide to sell the block of flats. Jack sells the block of flats for $500,000 at auction.

(i) Jack and Jill wish to know whether the sale of the block of land is assessable income for Jack. Discuss which provisions from ss CB 6–CB 23 would apply, if any. Is there any further information you would need to know before advising them on this?

(ii) Would your answer change if Jack purchased the block of flats in March 2011?

Answer rating: 100% (QA)

Answer i As per CB 6 provisions the land acquired for the purpo... View the full answer