Untitled Flashcards Set

What is the adjusted cost base of an asset defined as?

The original cost base of the asset adjusted by specific factors including depreciation, amortization, improvements, and certain capital costs.

How is the adjusted cost base reduced?

It is reduced by any depreciation or amortization allowance and any refund or reimbursement related to defects in the asset.

What increases the adjusted cost base of an asset?

The cost of improvements to the asset and other capital costs associated with the asset.

What costs are included in the adjusted cost base?

Non-deductible costs such as fees, commissions, legal advisers, advertising costs, and transfer costs including stamp duty.

How is 'business' defined according to the lecture notes?

Business is broadly defined to encompass any trade, profession, or vocation, and services provided excluding employment relationships.

What factors help determine if activities qualify as a business?

Factors include profit motive, scale of activity, repetition and continuity of activity, commercial character, and system and organization.

Is the presence of all factors necessary to determine a business?

No, the presence or absence of any one factor is not determinative; an isolated activity can still be deemed a business under certain conditions.

What does the term 'adventure' include in the context of business?

An isolated transaction that has a business character.