Example 2.3 Notes

Question 1

Local/international income/expenses

Answer 1

World-wide receipts/accruals

Question 2

Winning a prize….

Answer 2

Capital in nature.

Fortuitous and not arising out of an operation of business.

Question 3

Prize winning linked closely to employment

Answer 3

Not fortuitous gain and therefore not capital in nature

Question 4

Determining if capital in nature

Answer 4

1. Intention at acquisition

2. Speculation or investment

Question 5

Property inherited

Answer 5

Cannot be seen as speculation

Question 6

To determine if crossed the rubicon need to look st

Answer 6

1. Look at length property held for.
   2.Reason selling property
   Etc

Question 7

Deposit kept in separate bank account( trust account).

Answer 7

Probably not included in gross income.