Part 1 Examples of ordinary income, income from personal exertion A lawyer of many years had been involved with a family company and after the successful closing on the sales of the business was given $10,000 from the principal for the lawyer's personal qualities. REQUIRED For the scenario above, consider whether the associated receipts are ordinary income under s 6-5 ITAA 1997, and state your reasons incorporating common law. Refer to the definition of section 6 income from personal exertion in ITAA 1936 in your answer and make comment about the relevance of its impact. (3 marks) Part 2 Business income - Other receipts A coin collector receives receipts from selling his coin collection. REQUIRED Business income must be derived and be convertible to money to constitute ordinary income. Although, most receipts from carrying on a business will be income, not every business receipt will be income. There must be a sufficient connection to the business activity. Spedley Securities For the above scenario consider whether the associated receipts are ordinary income pertaining to business under s 6-5 ITAA 1997, and state your reasons incorporating common law. (Ignore CGT consequences) (3 marks) Part 3 Various Specific deductions - Gifts Jiao-Long made a donation of $300 to a compulsory Catholic school building fund. REQUIRED Consider the scenario above involving a gift and advise whether the expenditure is deductible. Assume the recipient is a deductible gift recipient. (3 marks)