Income tax: property development: if land originally acquired (before 20 September 1985) and used as a farm, is later ventured into a business of subdivision, development and sale, how are the proceeds on the sale of a block returned as assessable income?

Taxation Determination TD 92/161 provides that where land originally acquired and used as a farm, is later subdivided, developed and sold, the net profit on the sale of land is assessable as ordinary income.

Taxation Determination TD 92/161 is withdrawn with effect from 1 July 1997 because of the introduction of section 70-30 into the Income Tax Assessment Act 1997. Section 70-30 provides for valuing items of property owned by a taxpayer, but not held as trading stock, to be valued at either cost or market value once the property starts being held as trading stock.