Question
Sunil is 64 years old. for many years he owned a $2 shop which he has operated in a regional shopping center Sunil bought the
Sunil is 64 years old. for many years he owned a $2 shop which he has operated in a regional shopping center Sunil bought the shop in December 1986 when he acquired it at a cost of $120000. however, because of the long hours involved in running the shop, he decided to reduce his operations. Sunil talked to a real estate agent in September 2020. the agent advised that under current market conditions the shop if sold as a single unit, would fetch $600000. Sunil decided not to sell the shop as a single unit. instead, he decided to divide the shop into 4 mini shops and to sell them at $1200000 each($300000 each) the cost of doing this was 700000 in total he begin sub-dividing the shop in November 2020 and completed the shop division in march 2021. after the shop division was completed Sunil sold each of the 4 mini shops Required: cite all relevant legislation and case law, discuss whether Sunil would be assessable on the sale of the 4 mini shops do not calculate Sunil's tax liability.
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