piece of land owned by two brothers, Alvin (lecturer) and Alex (engineer) was disposed of land for RM 1 million. The land was purchased in 2012 when a friend of Alex informed him of a sales advertisement in the newspaper. The brothers thought it would be a good idea to build homes for their families and their childrens families upon their retirement. Alvin withdrew money from the employees Provident Fund while Alex withdrew money from savings to pay for 80% of the cost of the purchase. The remaining 20% was financed a ten- year bank loan jointly taken out by the brothers.

Two years after the purchase the brothers were approached by a used car dealer who wished to buy the land. The brothers declined the offer to sell the land but agreed to rent it out for a period of three years. Upon the expiry of the tenancy agreement a portion of the land was planted with fruits which were distributed among the brothers relatives and friends.

In July 2019 the land was sold in order to settle the debts owed by Alex as well as to pay for the overseas education of Alvins children. This was Alvin and Alex first transaction of real estate.

Required:

Determine, with brief explanation and by reference to the badges of trade, whether or not the profit from the above disposal is liable to income tax.