Question 1

Which of the following may be considered ordinary income?
1 - Salaries
2 - A Government Pension
3 - Lottery winnings
4 - Rent from an investment property

Accepted Answer

A)  1 and only 
B)  1, 2 and 3 only 
C)  1, 2 and only 
D)  1,2 3, and 4. 
A)  1 and only 
B)  1, 2 and 3 only 
C)  1, 2 and only 
D)  1,2 3, and 4.

Question 2

Which of the following statements is not true in regard to the distinction between income and capital receipts?

Accepted Answer

A)  The distinction is no longer relevant as capital gains are now taxed just the same as income receipts 
B)  Capital receipts are not included in ordinary income and so the distinction is still relevant 
C)  Capital receipts are subject to different taxing rules than income receipts and so the distinction is still relevant 
D)  The tree and the fruit analogy is still useful in distinguishing between income and capital receipts 
A)  The distinction is no longer relevant as capital gains are now taxed just the same as income receipts 
B)  Capital receipts are not included in ordinary income and so the distinction is still relevant 
C)  Capital receipts are subject to different taxing rules than income receipts and so the distinction is still relevant 
D)  The tree and the fruit analogy is still useful in distinguishing between income and capital receipts

Question 3

Dennis was recently injured at work and he has been unable work since. His employer has agreed to pay Dennis weekly compensation to cover his lost wages and also a separate lump sum for the permanent disability he has suffered. Roger will be able to work again in a few months after he recovers. Would any amount of the compensation paid to Roger be assessable to him as ordinary income?

Accepted Answer

The assessability of compensation paymen

Question 4

Which is the most likely to be carrying on a business under ITAA97 s995-1?

Accepted Answer

A)  A self- employed builder 
B)  A barrister 
C)  A receptionist 
D)  A serious small scale rabbit breeder 
A)  A self- employed builder 
B)  A barrister 
C)  A receptionist 
D)  A serious small scale rabbit breeder

Which of the following may be considered ordinary income? 1 - Salaries 2 - A Government Pension 3 - Lottery winnings 4 - Rent from an investment property

Which of the following statements is not true in regard to the distinction between income and capital receipts?

Which is the most likely to be carrying on a business under ITAA97 s995-1?

The Australian Taxation System and the Tax Formula

Residency and Source of Income

Capital Gains Tax

Fringe Benefits Tax

General Deductions

Specific Deductions Andapplications Ofdeductibility

Capital Allowances

Tax Accounting and Trading Stock

Taxation of Individuals

Taxation of Companies

Taxation of Partnerships, Joint Ventures, Trusts and Superannuation

Goods and Services Tax

Ethics, Tax Avoidance and Evasion

Filters

Exam 3: Assessable Incomeincome Tax

Which of the following may be considered ordinary income? 1 - Salaries 2 - A Government Pension 3 - Lottery winnings 4 - Rent from an investment property

Which of the following statements is not true in regard to the distinction between income and capital receipts?

Which is the most likely to be carrying on a business under ITAA97 s995-1?

The Australian Taxation System and the Tax Formula

Residency and Source of Income

Capital Gains Tax

Fringe Benefits Tax

General Deductions

Specific Deductions Andapplications Ofdeductibility

Capital Allowances

Tax Accounting and Trading Stock

Taxation of Individuals

Taxation of Companies

Taxation of Partnerships, Joint Ventures, Trusts and Superannuation

Goods and Services Tax

Ethics, Tax Avoidance and Evasion

Filters