Example 2.3 Notes Flashcards
1
Q
Local/international income/expenses
A
World-wide receipts/accruals
2
Q
Winning a prize….
A
Capital in nature.
Fortuitous and not arising out of an operation of business.
3
Q
Prize winning linked closely to employment
A
Not fortuitous gain and therefore not capital in nature
4
Q
Determining if capital in nature
A
- Intention at acquisition
2. Speculation or investment
5
Q
Property inherited
A
Cannot be seen as speculation
6
Q
To determine if crossed the rubicon need to look st
A
- Look at length property held for.
2.Reason selling property
Etc
7
Q
Deposit kept in separate bank account( trust account).
A
Probably not included in gross income.