A case involving a potato merchant who purchased land with the intention to hold it as an investment. No income was generated by the land; however, it did have planning permission. After an unsolicited offer, the land was sold. a. This was a large piece of land; therefore, it was a trade. b. The transaction was far removed from the taxpayer’s normal activity and was similar to an investment hence not trading. c. This was trading activity; the farmer uses land to farm therefore this was a part of his normal activity and subject to tax on trade. d. The land was marketable; therefore, the sale is one of adventure in trade.

Accounting Tom can use the 1031 like kind exchange rules to exchange his personal vehicle for another personal vehicle as long as the fair market value of both are the same. Group of answer choices True False

Explain the exclusion for gain  on sale of personal residence. Does that exclusion apply to d sale of vacation home as well?

Why might it be more advantageous for a taxpayer to demonstrate that they ... Why might it be more advantageous for a taxpayer to demonstrate that they have realised a capital gain, rather than a profit from buying and selling an asset? O a. Capital gains does not apply where the person disposing of the asset did not purchase the asset for profit making purposes. O b. Capital gains can be deferred indefinitely by a taxpayer, until they actually make a capital loss. O c. A capital gain on the disposal of an asset is not subject to tax if the amount was realised for non-business purposes. O d. If a capital gain, then CGT is levied against the difference of the cost base and the disposal amount, and a 50% discount may be available to a non company taxpayer. Which statement is correct? Which statement is correct? O a. A company is resident of Australia if it is incorporated in New South Wales O b. The ATO determines which taxpayers are residents or non-residents through its rulings program…