BASIC
CHAPTER 14 Q1 BUSINESS SECTION
S1
The taxpayer is genuinely in business, and is in the
STS.
P1
Personal services income (PSI) |
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Did you receive any personal services income? |
YES |
Read on. |
Part A |
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Did you satisfy the results test? |
YES |
Go to item P2. |
Have you received a PSI business determination? |
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Did you receive > 80% of your PSI from one
source? |
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What is personal services income (PSI)?
PSI is when it is the person’s skills and
abilities which are being contracted. The following are NOT PSI:
The results test
For at least 75% of their income:
AND
·
The
taxpayer had to provide his own tools and equipment. Again,
this is how a genuine business operates. An employee uses the tools and
equipment of the employer.
AND
Thus the results test is designed to separate the
genuine businesses from the virtual employees. If ALL the three questions of the
results test are passed, then the income and expenses go at item 14.
Item P2 |
Description |
Furniture
restoration |
Item P3 |
Number
of business activities |
1 |
Item P4 |
Status
of your business |
|
Item P5 |
Business
name of main business |
Harry’s Restoratorium |
Item P6 |
Business
address of main business |
Hendon
SA 5014 (must be
a street address) |
Item P7 |
Did you
sell any goods using the internet? |
N |