Kaira is a nurse and a big fan of Star Wars. One day, she sees a...

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Kaira is a nurse and a big fan of Star Wars. One day, she sees a collection of limited-edition Star Wars collectibles at a garage sale. She buys the collection at what she believes is a bargain price of $2000. She immediately builds a website outlining each item in the collection with a detailed description. She conducts market research to include a fair representative value next to each item. She then sets up an auction function on the website. She chooses 4th May 2023, as the day of the auction to coincide with Star Wars day. She shares her website and promotes the auction on Star Wars fan pages. She ends up selling the collection for a total of $8750. (a) Kaira seeks your advice as to whether the proceeds from the sale would be included in her ordinary income, discussing the extended concept of ordinary income from business, for the 2022-23 financial year. Please use relevant case law, legislation, and tax rulings (where applicable) to explain why or why not. (b) Kaira had so much fun running the auction that she is now considering launching an online business selling collectibles. Kaira seeks your advice about any obligations she may have in relation to GST, including the income tax implications of any GST proceeds. Kaira is a nurse and a big fan of Star Wars. One day, she sees a collection of limited-edition Star Wars collectibles at a garage sale. She buys the collection at what she believes is a bargain price of $2000. She immediately builds a website outlining each item in the collection with a detailed description. She conducts market research to include a fair representative value next to each item. She then sets up an auction function on the website. She chooses 4th May 2023, as the day of the auction to coincide with Star Wars day. She shares her website and promotes the auction on Star Wars fan pages. She ends up selling the collection for a total of $8750. (a) Kaira seeks your advice as to whether the proceeds from the sale would be included in her ordinary income, discussing the extended concept of ordinary income from business, for the 2022-23 financial year. Please use relevant case law, legislation, and tax rulings (where applicable) to explain why or why not. (b) Kaira had so much fun running the auction that she is now considering launching an online business selling collectibles. Kaira seeks your advice about any obligations she may have in relation to GST, including the income tax implications of any GST proceeds.

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a Regarding whether the proceeds from the sale of the Star Wars collectibles would be included in Kairas ordinary income for the 202223 financial year ... View the full answer