Reference no: EM133258401
Questions
1. Which of the following statements is correct?
a. Gains that are ordinary income will be assessable income under s 6-5 of ITAA 1997.
b. Gains will be ordinary income if they are the type of gains that courts of law consider to be of an income character.
c. A gain that comes in regularly/periodically is more likely to be ordinary income than a lump-sum gain.
d. Whether or not a gain arises from an illegal activity does not affect whether it is ordinary income.
e. All of the above.
2. Arthur, an amateur rugby player, was paid $50,000 sign-on fee to give up his amateur status an turn professional. There is a benefit in being an amateur and there's a chance that he could become an international player at amateur level. Is the sign-on fee assessable income or capital in nature?
a. The sign-on fee is assessable income.
b. The sign-on fee is capital in nature.
3. Hamish works for an Australian construction company that has offices in Brisbane, Melbourne and Sydney. Hamish is currently based in Brisbane but his employer requires him to move cities. Hamish sells his house in Brisbane. The house was sold for less than the price for which he had purchased it. His employer reimburses him for the loss from selling his house. Is the reimbursement for the loss assessable income?
a. Yes, the reimbursement to Hamish is assessable income.
b. No, the reimbursement to Hamish is not assessable income. 23. Capital losses from collectables can be used to reduce capital gains from any CGT asset.
a. True
b. False
4. Which of the following statements is correct?
a. A taxpayer who is an Australian tax resident must include in their assessable income the ordinary and statutory income they derive from worldwide sources (ss.6-5(2) and 6- 10(4) ITAA97).
b. A foreign resident taxpayer will only be taxed on ordinary and statutory income they derive from Australian sources (ss. 6-5(3) and 6-10(5) ITAA97).
c. Both (a) and (b) are correct.
d. None of the above.
5. Jane has been practising accounting for 5 years and working for KPMG, a top tier accounting firm. She's always been interested in interior design and decides to undertake studies to become an professional designer. Jane resigns from her role at KPMG to study. The duration of the studies lasts two years. Is the cost of of the interior design course an allowable deduction?
a. Yes
b. No
6. Sportswear Pty Ltd spends $5,000 to produce a new type of clothing, perfect for cyclists. It has never produced nor designed new clothing before as its business model is to purchase and re-sell clothing from manufacturers. Sportswear Pty Ltd 7 claims a deduction of $5,000 for the new product development as an allowable deduction. Is Sportswear's treatment of the new product development costs a correct treatment of that cost from a tax perspective?
a. Yes
b. No
|
Tax consequences of such recharacterization
: In what manner is the IRS likely to re-characterize these transactions? What would be the tax consequences of such recharacterization?
|
|
Why albert use for federal income tax
: Why Albert's use for federal income tax purposes of the Turner NOLs may or may not be limited by any applicable provisions of the Internal Revenue Code of 1986,
|
|
Explain how a person is determined to be an expert witness
: Explain how a person is determined to be an expert witness in criminal court and how an expert is different than a lay witness
|
|
Can government tax its own agencies or instrumentalities
: Can the government tax its own agencies or instrumentalities? Can the government revoke the real property and income tax exemptions enjoyed by non-stock,
|
|
Amateur status turn professional
: Arthur, an amateur rugby player, was paid $50,000 sign-on fee to give up his amateur status an turn professional.
|
|
Summarize the article and explain the main issues discussed
: Read the article titled as "Drive Innovation with Better Decision-Making. Summarize the article and explain the main issues discussed in the article
|
|
Accrual-method taxpayers
: A and X are both accrual-method taxpayers. What would result if X were on the cash method and had not deducted the $10?
|
|
Citizen and resident of canada
: Caldwell, a citizen and resident of Canada, is employed by a Montreal branch of a Delaware corporation, whose business is located primarily in the United States
|
|
What would the code be like without them
: Consider the use of curly brackets, square brackets, and semi-colons in Java. What purpose might these serve? What would the code be like without them
|