Mrs Doolittle is as an employed account executive with a major retail store. In her spare time,
Question:
Mrs Doolittle is as an employed account executive with a major retail store. In her spare time, Mrs Doolittle is an avid amateur golfer who also designs and makes women’s golf clothes in larger sizes. Mrs Doolittle is an enthusiastic golfer who enters all amateur events she can, but she is not particularly skilled at the game. However, she does have a flair for clothing design, and she takes her golf clothes to all the events she participates in and sells the clothes she has made to other lady golfers. Mrs Doolittle takes clothing orders from the golfing ladies and tailors the garments to their specifications. Mrs Doolittle studied fashion design course at her local TAFE. She also had a small catalogue of her designs printed, which she distributes at all the golfing tournaments that she attends. Mrs. Doolittle is optimistic about the success of her clothing line. During this 2020-2021 financial year, she attended 48 golfing competitions. She won one tournament during the year and received prize money of $500. She also sold Mrs Doolittle clothing to the value of $45,000.
REQUIRED:
Discuss the assess ability of the above receipts.
Expert Answer:
Pursuant to Section 65 of the Income Tax Assessment Act of 1997 an assessable income includes ordina... View the full answer
