Nicholas purchased a large block of land in an inner city suburb in 2007. There was a very old house on the land which was not habitable. Nicholas obtains permission from the Brisbane City Council to demolish the old house and builds four multi-level townhouses on the site. When construction is complete in 2009, Nicholas advertises all four townhouses for sale, but as a result of the global financial crisis he is unable to sell any of the townhouses. In 2010 with no prospects of selling the townhouses for a reasonable price, Nicholas decides to occupy one of the townhouses as his family residence and rent the remaining three townhouses. In late 2016, with property prices improving, Nicholas decides to auction the townhouses and all four are sold at auction for a profit of $100,000 each.
Explain why, or why not, any of this profit is assessable income?