Question
(d) Jane has a fulltime job employed as a teacher, but is an avid DIY renovator. In December 2015 she bought a bungalow, repainted it
(d) Jane has a fulltime job employed as a teacher, but is an avid DIY renovator. In December 2015 she bought a bungalow, repainted it inside and out, and carried out a makeover of the garden while living in it. A real estate agent approached her and convinced her that she could make a quick profit if she put the house on the market. She did this in February 2016 and sold it for $100,000 profit after expenses. Encouraged by this, Jane plans to repeat the exercise on a regular basis. She asks you for tax advice, as she has heard that house sales can be taxable in some circumstances.
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