taxation 495457

Income Classification Briefly discuss the income tax implications of the following, stating which sections of the ITAA 1997 or ITAA 1936, if any, are most relevant. 1.      A $10,000 bonus paid by the Australian Cricket Control Board to the captain of the Australian cricket team for outstanding leadership during a successful tour of England. 2.      A boat valued at $35,000 given to an amateur footballer to turn professional. 3.      Profit of $25,000 made by a trucking company on the disposal of one of the 30 trucks it has leased to carry on its business. 4.      An exchange gain of $500,000 made by a manufacturer in respect of money borrowed in 1997 and used to finance construction of a new building. 5.      Gift and payments made by a football club and its supporters to a star professional player, largely in their delighted response to his being selected to play for Australia. The club gave him a car valued at $25,000; supporters, through a collection at one game, gave him $2,425. Week 5 Capital Gains Tax Because of his wife’s ill-health, Brain sold his gift shop and family home in Victoria and moved to WA on 20 June this year. Brain had acquired the vacant premises 10 years ago for $750,000 and established the business on that date. He sold the business on 20 May this year for a net consideration of $1,880,000. This was made up as follows:   Items AUD $ 1 Goodwill 440,000 2 Trading Stock 60,000 3 Fittings 120,000 4 Shop and Land 1,360,000 5 Less debt taken over secured over stock and fittings (100,000) In addition, Brain received a further $20,000 for signing a contract not to open another business within a 10 Km radius for the next five years. The turnover of the shop for the previous financial year was $540,000. Brain’s home is valued at $1.8m. He also has a 45% interest in a property development company which has assets of $5.4m. His wife also has a 5% interest in that company. The turnover of the property…