Explain How Aragorn Lives And Works In The Two Kingdoms
ASSIGNMENT
Question #1
Aragorn, lives and works in The Two Kingdoms. He is a sole trader in the buying and selling of swords, axes, knives, pikes and other instruments of mayhem throughout the Two Kingdoms. He has also invested in the purchase of metal working shops and forges in The Shire and Landover. The end of the Great War brought with it an economic downturn which negatively impacted his weaponry business leaving him with large debts to creditors as well as an outstanding business loan of which the Elven Bank is now demanding repayment. He has requested your help with regards to his tax position (specifically whether each scenario represents a trade or not) on the following transactions which he hopes will raise enough money to …show more content…
Subject matter of the realisation which speaks to when certain items/commodities are bought and held for trade when they are in demand in accordance to their nature as can be seen in the case of Rutledge v I.R.C. which illustrates that a taxpayer who was a moneylender and had an interest in a cinema company, purchased a million rolls of toilet paper and shortly after was sold the million rolls. The taxpayer claimed that the money made was a capital gain and was fther stated by the UK commissioner that trading was …show more content…
Subsequently he got permission to build a large house on the lot which he eventually sold and moved his business elsewhere. With acquiring the land it was viewed as a capital asset thus selling the land was consistent with the land having been purchased also as a trading asset and he was charged tax on the profits from the sale and appealed to the Court of Appeal where the decision was that the lot was acquired and sold as a capital asset.
(e) Aragorn is the owner of a painting by artist Sauron, which was given to him by his grandfather many years ago. He has had an offer of 70.000 gold pieces for the painting. Aragorn has never previously sold any works of
Question #1
Aragorn, lives and works in The Two Kingdoms. He is a sole trader in the buying and selling of swords, axes, knives, pikes and other instruments of mayhem throughout the Two Kingdoms. He has also invested in the purchase of metal working shops and forges in The Shire and Landover. The end of the Great War brought with it an economic downturn which negatively impacted his weaponry business leaving him with large debts to creditors as well as an outstanding business loan of which the Elven Bank is now demanding repayment. He has requested your help with regards to his tax position (specifically whether each scenario represents a trade or not) on the following transactions which he hopes will raise enough money to …show more content…
Subject matter of the realisation which speaks to when certain items/commodities are bought and held for trade when they are in demand in accordance to their nature as can be seen in the case of Rutledge v I.R.C. which illustrates that a taxpayer who was a moneylender and had an interest in a cinema company, purchased a million rolls of toilet paper and shortly after was sold the million rolls. The taxpayer claimed that the money made was a capital gain and was fther stated by the UK commissioner that trading was …show more content…
Subsequently he got permission to build a large house on the lot which he eventually sold and moved his business elsewhere. With acquiring the land it was viewed as a capital asset thus selling the land was consistent with the land having been purchased also as a trading asset and he was charged tax on the profits from the sale and appealed to the Court of Appeal where the decision was that the lot was acquired and sold as a capital asset.
(e) Aragorn is the owner of a painting by artist Sauron, which was given to him by his grandfather many years ago. He has had an offer of 70.000 gold pieces for the painting. Aragorn has never previously sold any works of