QUESTION $5$

Which of the following land sales is not likely to result in taxable income to a person on disposal?

A$.$

A company has outgrown its current warehouse, the company sells the land and warehouse and purchases a larger warehouse to move the business into. The Company makes a gain of $$500,000$ on the sale.

B$.$

David purchased a bare section of residential land in $2023$ with the intention of building a dwelling and then selling the land with the completed dwelling for a gain. Upon completion of the dwelling, David used the property as a residential rental for one year and then sold it$.$ He made a $$350,000$ gain.

C$.$

Vicky owns a company that builds residential houses. She purchased residential land with a house in dire need of repairs. She initially intended to live in the property while undertaking the necessary repairs, but decided it was too droughty. She made major impriovements and sold the property $2$ years later for a gain of $$200,000.$

D$.$

All of the above land sales would likely result in taxable income.