Lea is a third-year university student. She has received high grades for all her assessments in her first and second years of study. Lea has attended all her lectures and tutorials and compiled a thorough set of notes for each of the courses she has completed. She decides to take advantage of her efforts and sell her notes to students currently enrolled in courses that she has taken. She decides not to make the notes available online, due to the ease with which they could be copied. Instead, she compiles the notes into books and sets up a stand in the university quad during the first week of term to sell the notes. Over the 16 courses she has taken, she sells 150 books at $12.50 each, making $1,875 of which $1,725 is profit.

Questions:

1. Is the money received from selling the course notes would constitute income under ordinary concepts?

2. Is the money received from selling the course notes would constitute income from carrying on a business?

Use the New Zealand income taxation act 2007 to support this

Answer rating: 100% (QA)

Under New Zealand income taxation law the determination of whether income is derived under ordinary ... View the full answer