REQUIRED TO USE CASE LAW AND LEGISLATION

On 1st July 2020, a YTB personality (we cannot say who so we will call her Ms X) calls at the practice and asks for assistance sorting out her tax affairs.. She worked for her employer for 6 months until her YTB activities interfered with her work, and she stopped work. She has received $30,000 gross from her employer who deducted $5583.50 PAYE. Her YTB activities have resulted in two sponsorship deals. One for $10,000 by an Australian company and one involving a US company who paid AU$5,000 into an account in her name with a bank in Vanuatu. She also earned $$10,000 as a private in the army reserve, and received rental on a property she has owned for 5 years $12,000, against this property income she has paid insurance, rates and land tax to the extent of $6,000. She has also replaced an outdoor pagoda in the rental property garden at a cost of $25,000. Further on 10th August, 2019 she Sold a diamond ring for $5,000 that she had purchased in 2015 for $3,000. Also on 20th June, 2020 she sold for $25,000 a Toyota MR2 sports car she had purchased in June 2013 for $12,000.

Required: Write a report to the practice manager detailing how the Tax Office would treat these payments. You should refer where applicable to case law, and how this has influenced the classification of various revenue sources.