Case study : ordinary income
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. The doctor has also recently run into financial difficulties as a result of a malpractice suit and he is considering selling his property.
Define about the income such as: -
Ordinary income
Statutory income
Advise him as to whether he would be required to include any amount in his assessable income as a result of the sale (max. 1000 words).
Required: - Under Australian taxation law
Harvard reference (6 or more )