Advise BS on the income tax implications of the above. Fully explain your advice by reference to
Question:
Advise BS on the income tax implications of the above. Fully explain your advice by reference to tax legislation, tax cases and tax principles.?
BS owns a residential rental property (house) in the leafy Sydney suburb of Dandenong. The weekly rent received is $990. The tenants were away on holidays in December 2019. A fire broke out on 29 December in the Botany Park that is near BS's property, and it crossed over into BS's property. Before the fire service could get to the property and put out the fire, the fire had completely burned down the stand-alone timber double garage on BS's property. The fire also left prominent burn marks (black marks) on a large part of the outside brick wall of the dining and lounge rooms. However, there was no structural damage to this blackened part of the house. After consulting the tenants, BS decides to rebuild the garage using brick because of its fire resistance qualities. The cost of the new garage was $10,500. BS also hired specialist cleaners in having the blackened bricks on the house cleaned; this cost $2,000. BS's property insurance policy did not cover fire damage (because of the closeness of the Botany Park to BS's property).
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Introduction To Federal Income Taxation In Canada
ISBN: 9781554965021
33rd Edition
Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett