Robert works full time as a paralegal. He loves to play the guitar and regularly records music with his old high school friends he wrote himself and posts them on YouTube. He dreams that one day he would be able to make enough money to quit his job as a paralegal.
For the last three years Robert would on average spend approximately 10 hours a week on this activity. His sister owned a recording studio, he was able to use her recording facilities for free. On average, he would post a new song on YouTube every month.
Since Robert found quite a following (some of his songs had over 100,000 hits), he started to make money through the adverts served alongside to his videos. In an attempt to profit from his new found fame, he auctioned some of his collection of music CDs of other artists online (that she had bought many years ago) and manages to sell them for $5,000.
Advise Robert on whether the $5,000 is assessable for income tax purposes.
Robert works full time as a paralegal. He loves to play the guitar and regularly records music with his old high school friends he wrote himself and posts them on YouTube. He dreams that one day he would be able to make enough money to quit his job as a paralegal.
For the last three years Robert would on average spend approximately 10 hours a week on this activity. His sister owned a recording studio, he was able to use her recording facilities for free. On average, he would post a new song on YouTube every month.
Since Robert found quite a following (some of his songs had over 100,000 hits), he started to make money through the adverts served alongside to his videos. In an attempt to profit from his new found fame, he auctioned some of his collection of music CDs of other artists online (that she had bought many years ago) and manages to sell them for $5,000.
Advise Robert on whether the $5,000 is assessable for income tax purposes.
Please include all relevant case laws and law section of Taxation Act
