One of my client already own a residential house and living in it, he also have a rental property too. He entered in purchase agreement of a house with the developer. Due to delay in completion he sold this house. He received part of the amount in 2020 and will get the rest in 2024.
My questions are:
- this income should be reported as capital gain or as business income?
- when it should be reported - on 2020 tax return or on 2024 tax return?
Please help me.