Jack owns a large parcel of land on which there are many tall pine trees. Jack intends to use the land for grazing cattle and therefore wants to have it cleared. He discovers that a logging company is prepared to pay him $200 for every 100 lineal feet of timber they can take from his land. Leaving aside any capital gains issues: Advise Jack as to whether he would be assessed on the receipts from this arrangement. Would your answer be different if he was simply paid a lump sum of $50,000 for gran …
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