MLC301 Principles of Income Tax Law - Question/Answer

Get Expert's Help on Assessment Writing

Question 9 (4 points)

Discuss the assessability of both the following receipts for Jacob:
i. the $40,000 paid by Ryan (3 marks)
ii.the $15,000 paid by Heather (1 mark)
Jacob lived on a small property by the coast of Warrnambool which was located high up on a cliff overlooking the ocean. He spent his days taking photos of the ocean, and he would let other companies use these photos for advertising if they paid Jacob a fee each time they were published. This year, Jacob was approached by a local builder called Ryan who was keen to collect limestone from Jacob’s land. Ryan and Jacob entered into an agreement where Ryan would pay Jacob $4,000 per tonne of limestone removed. The agreement stated that a minimum of 10 tonnes and a maximum of 40 tonnes could be removed each year. The maximum was removed and Ryan paid $40,000 to Jacob. Jacob decided he could do with some extra money to renovate his house. He entered into an agreement wither Heather where she would receive the payments relating to the use of the ocean photos for 5 years, in exchange for giving Jacob $15,000.

Expert's Answer

Ask a New Question
*
*
*
*
*

Chat with our Experts

Want to contact us directly? No Problem. We are always here for you

TOP

  Connect on WHATSAPP: +61-416-195006, Uninterrupted Access 24x7, 100% Confidential

X