NEED Advise Jimand Janeregarding the income tax implications arising from the above facts. HIRAC METHOD

In June 2022, Jimand Janeare approached by Sam who offers to purchase the Strathfield property for $1 million. Jimis so delighted that things seem to be going so well. He tells Pete, a former tenant who owed $2,000 in unpaid rent, not to worry about repaying the debt, saying that the debt is forgiven. The debt had been outstanding for twelve (12) months, and Pete had indicated that he would probably not be able to repay it. Janeis angry that Jimdid not check with her first, but Jimsays, Not to worry love, Ill just claim a tax deduction, and she soon cheers up. On 20 June 2022, Jimand Janeenter into a contract to sell the Strathfield property to Sam for $1 million, however Sam fails to secure finance and is unable to complete the contract. As a result, there is no change of ownership of the property.