QUESTION 28 The general deduction formula requires taxpayers to carry on a trade to be able to deduct expenses. Which one of the following scenarios would not constitute the carrying-on of a trade? (1) The taxpayer is an agent and manages properties and sells properties on behalf of clients and earns fees and commission. (2) The taxpayer carries on a business as a share dealer speculating on the JSE. (3) The taxpayer has a trademark and earns royalties by granting the right to use the trademark. (4) The taxpayer owns several investments in the form of properties and earns rental income. (5) The taxpayer buys shares in a private company and earns dividends from shares.
QUESTION 28 The general deduction formula requires taxpayers to carry on a trade to be able to deduct expenses. Which one of the following scenarios would not constitute the carrying-on of a trade? (1) The taxpayer is an agent and manages properties and sells properties on behalf of clients and earns fees and commission. (2) The taxpayer carries on a business as a share dealer speculating on the JSE. (3) The taxpayer has a trademark and earns royalties by granting the right to use the trademark. (4) The taxpayer owns several investments in the form of properties and earns rental income. (5) The taxpayer buys shares in a private company and earns dividends from shares.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 10DQ
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QUESTION 28
The general deduction formula requires taxpayers to carry on a trade to be able to deduct expenses. Which one of the following scenarios would not constitute the carrying-on of a trade?
(1) The taxpayer is an agent and manages properties and sells properties on behalf of clients and earns fees and commission.
(2) The taxpayer carries on a business as a share dealer speculating on the JSE.
(3) The taxpayer has a trademark and earns royalties by granting the right to use the trademark.
(4) The taxpayer owns several investments in the form of properties and earns rental income.
(5) The taxpayer buys shares in a private company and earns dividends from shares.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT