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Hilary is a well-known mountain climber. The Daily Terror newspaper offers her $10,000 for her life story, if she will write it. Without the assistance of a ghost writer, she writes a story and assigns all her right, title and interest in the copyright for $10,000 to the Daily Terror. The story is published and she is paid. She has never written a story before.
She also sells the manuscript to the Mitchell Library for $5,000 and several photographs that she took while mountain climbing for which she receives $2,000.
Requirement: Discuss whether or not the three payments are income from personal exertion.
Would your answer differ if she wrote the story for her own satisfaction and only decided to sell it later?
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The paper is in relation to the Income Taxation Rules of Australia for Income to be considered as Income from Personal Exertion, Income which is computed and assessed as income for parent in case the parent received interest from child. The paper also covers the methods of computing the capital gains arising from the sale of asset under various methods and the applicability of the methods.
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