QUESTION $2\mathrm{.}3(20$ marks, $36$ minutes$)$

Fred Fortune is a retired doctor who, in March $2023,$ used his lifetime savings to purchase a rental property in Cape Town. This was the first rental property Fred had ever owned. The property was immediately let to tenants.

During August $2023,$ Fred received an unexpected phone call from the representative of a Middle Eastern company. The company wanted to purchase Fred's property and convert it into a small boutique hotel, in time for an international congress that was being held in Cape Town and for the upcoming holiday season. The company was prepared to offer Fred almost double what he had paid for the property.

After thinking about the offer overnight, Fred decided to accept it$,$ as he felt the offer was too good to turn down. The sale of the property duly took place in August $2023.$

$\backslash$table$[[$REQUIRED:$,$MARKS$],[\backslash$table$[[$Briefly discuss at least five relevant factors that the courts could apply in determi$-],[$ning whether Fred Fortune's sale proceeds will, on a balance of probabilities, be$],[$included or excluded from his gross income based on its revenue or capital nature.$]],20$