On 1 July 2015 Travis, who is a builder, purchased a block of land for $400,000 with the intention to hold it for 2 years and then sell it at a profit. Travis attempted to sell the land in July 2017 but was unsuccessful as there was no buyer demand for it. Travis then built 4 townhouses on the land in November 2017 at a total cost of $1,200,000 and leased them in March 2018 to tenants at $20,000 per annum. In March 2020, Travis sold the townhouses for $700,000 each when the property market suddenly improved.
Required
Advise Travis on the alternative views and treatments of monies involved in the above dealings making reference to case law and relevant ITAA sections
