Matt owned a small plot of land with an adjusted cost base of $500,000. The land was acquired by Matt eight years ago. During 2020, he sold the land at a price of $1,000,000. The purchaser provides a down payment of $50,000, with the balance payable in 10 annual instalments of $95,000 beginning in 2021.

What are the tax implications for the Year 2020? (How much will be taxable for the Year 2020)

Tax Law: Canada