1. Frank derives business income as a freelance photographer, During the year he won an industry award for one of his photographs amounting to $4,000
2. Mark receives $6000 for sale of pottery. The sales relate to items that she has made as part of her hobby (her expenses are in excess of $1,000)
3. Wendy receives $200 as an award for the best painting in a local art exhibition. Wendy paints two or three artworks a year, which she displays at home or gives as gifts to family.
4. Tom receives $4,800 from mowing lawns in his local neighborhood. He does this each Saturday morning before his weekly game of golf.

Required: Giving reasons, indicate whether each TP is conducting a business or a hobby for tax purpose

Answer rating: 100% (QA)

Yes Each TP who is running a business for tax purposes Fra... View the full answer