Sam purchased 80 acres of farmland in May 1984 for $270,000 on which he conducted a beef cattle breeding operation. In February 1995 he purchased an additional 20 acres of adjoining farmland for $110,000 in order to expand his operation. There was no house on the farmland so Sam lived in the nearby township. Due to ongoing drought conditions and Sams advancing age, he decided in 2017 to sell and retire from farming. A local real estate agent valued the property at $440,000. Given the time and effort Sam had put into the farm over the years he didnt feel this was enough of a return on his investment. As the property was located close to town, the real estate suggested that Sam consider selling the land as a sub-division. This would likely generate a higher return per acre than selling the property as farmland. Sam re-zoned and received council approval for the sub-division in May 2017. Over the period from July 2017 to January 2018 Sam spent $450,000 on sub-division costs such as surveyor fees, electricity and water connections and main road access. In April 2018 a local construction company agreed to buy the entire sub-division for $1,100,000. Although the contract for sale was dated in April, settlement didnt take place until July 2018. Agents commission and legal fees payable by Sam amounted to $45,000. Required: Advise Sam of the taxation consequences of the above transactions