Advise Tom if the $8,0000 is assessable and if so under what category. In your answer you must refer to relevant legislation and case law?

Tom is a full time engineer but he loves singing. He records songs that he wrote himself and posts them on You Tube. For the last three years he would spend approximately 20 hours a week on this activity. His cousin Lisa owned a recording studio which he could use for free. He would like to be a full time singer but know this is unlikely. He has on average 100,000 hits for the songs that he has uploaded onto You Tube. In an attempt to profit from his popularity on You Tube he sold some of his clothes and items used when he was recording his songs on You Tube. He got $8,000. Required:

Answer rating: 100% (QA)

To advise Tom on whether the 8000 he received from selling his clothes and items used in recording his songs on YouTube is assessable income we need t... View the full answer