Mellisa has been working as a consultant giving tax advice to ASXlisted mining companies for the last 20 years trading under the business name Mining Partners Pty Ltd.Due to an injury, Mellisa had to dissolve her practice. Mellisa then demolished her old 1950s office that sat on prime commercial property in the heart of Perth City. She added extensive underground power provisions, built in a fully sustainable back up power generator and laid new cobblestone roads. Mellisa then sold the land and retired in time for the end of the 2019 tax year.

Required: 

Discuss whether the proceeds from sale would be classified as income from business and therefore ordinary income? Your answer must not exceed half a page and you must refer to two cases in your discussion.

Answer rating: 100% (QA)

First we have to understand what is business income Business Income under income tax act it simply m... View the full answer