The property owner’s experience in the real estate market can be a persuasive factor in determining his intention in acquiring the land in question. A person who is in the habit of investing in property by renting it out is likely to carry on investing. Similarly, a person who tends to trade or deal in land is more likely to stick to trading or dealing.

The courts appear to give special leeway to individuals with little or no prior experience. There are a number of cases where the taxpayer was held to be an investor, in spite of factors which would otherwise have strongly suggested that he was engaged in a trading venture.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.