Required: Discuss whether the sale of the land generates ordinary income for

Karl due to laws relating to the assessability of extraordinary/isolated

transactions. Do not discuss Capital Gains Tax. Where appropriate, support

your answer with legislative and case authority. 

Please refer to all of the relevant sections of the legislation, cases and

any other scholarly material when providing advice to Cindy. Advise

Cindy on:

Any Capital Gains Tax liabilities for her in relation to her

activities.

Specifically, make sure that your discussion includes advice on

whether Cindy can take advantage of the CGT small business

concessions to reduce the amount of tax payable.

Also ensure that you calculate Cindy’s Net Capital Gain for

the current financial year.

Read less