Which of the following items is nottaxable income of a New Zealand tax resident? why is...

Which of the following items is nottaxable income of a New Zealand tax resident? why is correct and why are not correct? a) Sale of a home that has been inhabited by the owner for 15 years and was not acquired with the intention of sale.

(b) Wages from a part time job working in a bar.

(c) Dividend income from an Australian listed company.

(d) Sales proceeds from selling flowers in a florist shop.

Expert Solution

(a) Sale of a home that has been inhabited by the owner for 15 years and was not acquired with the intention of sale is not taxable income of a New Zealand tax resident because according to taxation laws of New Zealand you dont need to pay taxes if you sale a house that has been inherited by you.

(b) Wages from a part time job working in a bar is taxable income of a New Zealand tax resident because salary and wages are sources of income from work that are taxed according to taxation laws of New Zealand.

(c) Dividend income from an Australian listed company is not taxable income of a New Zealand tax resident because according to taxation laws of New Zealand several exemptions from the FIF rules exist including an exemption for certain shares in Australian resident companies listed on the ASX and a de minimis exemption for individuals with total FIF investments having an aggregate cost of NZD50,000 or less. FIF exempt investments are taxable on distributions and on disposal, if held on revenue account.

(d) Sales proceeds from selling flowers in a florist shop is taxable income of a New Zealand tax resident because according to taxation laws of New Zealand it is a business income and it is taxable in New Zealand.

ekkarill92 answered 2 years ago

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