Which of the following statements regarding the capital- or revenue nature of receipts and accruals are correct?
(i) A taxpayer’s intention at time of acquisition of an asset is not the only factor to take into account as the intention can change during the period of ownership.
(ii) It is important to establish the taxpayer’s intention at the date of sale of an asset. Therefore, a taxpayer’s original intention when acquiring an asset is not conclusive when determining whether the receipt or accrual is of a capital nature.
(iii) In determining whether the receipts from the sale of an asset is capital or revenue in nature, it is important to consider objective as well as subjective factors (the taxpayer’s thoughts and feelings) together with the actual facts and circumstances in determining the taxpayer’s intention.
(iv) A taxpayer may acquire an asset for mixed reasons: partly capital and partly revenue.
Question 14Select one:
a.
(i) and (ii)
b.
None of the options are correct
c.
(i), (ii), (iii) and (iv)
d.
(ii) and (iii)
e.
(i)