What are the tax consequences of bruce''s sales

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Taxation law

In 1983 Bruce purchases 10 hectares of land for $1 million in an area that was ripe for subdivision. At the time of purchase he intended to get planning permission from the local council to develop the land by subdivision and then resell it at a profit, but instead he leased it for grazing horses. Three years ago Bruce attempted to get planning permission to subdivide his 10 hectares, but it proved very difficult, and finally in March of the current tax year the local council refused permission to subdivide. Bruce reluctantly sold the land in May for $3 million.

what are the tax consequences of bruce's sales?

 

Reference no: EM13995164

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