What elements must be present for an amount to constitute ordinary income under s 6-5 of ITAA 1997? a.Must not be statutory income and must not be capital. b.Nexus with an income earning activity. c.Benefit is cash or cash convertible and income according to ordinary concepts. d.Benefit must be cash or cash convertible; it must have a nexus with an income earning activity; benefit must not be in the nature of capital.

Section 6-5 of the ITAA 1997 shows that your assessable income includes income as stated to ordinary…

What elements must be present for an amount to constitute ordinary income under s 6-5 of ITAA 1997? a. Must not be statutory income and must not be capital. b. Nexus with an income earning activity. c. Benefit is cash or c

What elements must be present for an amount to constitute ordinary income under s 6-5 of ITAA 1997? a. Must not be statutory income and must not be capital. b. Nexus with an income earning activity. c. Benefit is cash or c

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter2: Gross Income And Exclusions

Section: Chapter Questions

Problem 1MCQ: The definition of gross income in the tax law is: All items specifically listed as income in the tax...

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Question

What elements must be present for an amount to constitute ordinary income under s 6-5 of ITAA 1997?

	a.	Must not be statutory income and must not be capital.
	b.	Nexus with an income earning activity.
	c.	Benefit is cash or cash convertible and income according to ordinary concepts.
	d.	Benefit must be cash or cash convertible; it must have a nexus with an income earning activity; benefit must not be in the nature of capital.

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