Receipts received in the ordinary course of business are considered to be ordinary income and...
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Receipts received in the ordinary course of business are considered to be ordinary income and consequently taxable. Which of the following statements is incorrect? aA scaffolding company that hires out equipment, but has receipts from customers for lost scaffolding, must include, in ordinary income, this incidental income. bThe purpose for which an asset is acquired is not important when determining if its sale is ordinary income. cA taxpayer who disposes of land bought previously but not used for productive purposes, eg for mining due to a lack of funds, will not be subject to income tax on the proceeds of the sale as no mining took place. dIf a taxpayer who runs a retail business, but makes some profits from a financial transaction, which has nothing to do with retailing, then this will not be considered to be taxable income.
Receipts received in the ordinary course of business are considered to be ordinary income and consequently taxable. Which of the following statements is incorrect?
aA scaffolding company that hires out equipment, but has receipts from customers for lost scaffolding, must include, in ordinary income, this incidental income.
bThe purpose for which an asset is acquired is not important when determining if its sale is ordinary income.
cA taxpayer who disposes of land bought previously but not used for productive purposes, eg for mining due to a lack of funds, will not be subject to income tax on the proceeds of the sale as no mining took place.
dIf a taxpayer who runs a retail business, but makes some profits from a financial transaction, which has nothing to do with retailing, then this will not be considered to be taxable income.
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