LAWS3101 Study Guide - Midterm Guide: Ordinary Income, Sherden
Document Summary
Accessible income = ordinary income + statutory income. 3 categories of income: income from employment and personal services (chap 6, income from property, income from business. Section 6-5 | your assessable income includes income according to ordinary concepts, which is called ordinary income". Allowances that you receive from your employer are ordinary income. But reimbursements that your employer pays you will be dealt with under fringe bene ts tax. You only need to match a receipt to one of the characteristic of ordinary income, not all of them. If a taxpayer receives regular or periodic payments, you still need to consider whether the receipt is capital in nature. If it is, then it can"t be ordinary income. Income resembles what most people would regard as income. Individual salary, interest, dividends, rent, sales, trust income, partnership income. Company turnover, dividends, interest, professional services fees. Some receipts speci cally dealt with in legislation statutory income, dividends.