Income Tax Taxpayer (TP) and Income to tax 1. Person to tax 2. That person's ownership over the property used to earn (labor and windfall gain??) 3. Difference in ownership over such properties at the year end and the year beginning (incremental ownership) 4. Assign the value over such properties owned Realization of incremental ownership over property : 1. By sale and disposal of inventories 2. Disposal of Non-Business chargeable assets (NBCA)/ Business Assets (BA)/ Business Liabilities (BL) 3. Pool disposal of Depreciable assets Interaction of complex property law and income taxation: - only those rights which entails economic benefits - complexity arises when those economic benefits are separable like in case of lease, taxpayer transfer only the right to use such properties -TP's initial ownership and final ownership is same (in case of operating lease) with different values of the leased assets - but the rent income grant ownership over ...