Anna Whites have the following receipts and expenses for the year 2021/22. She is a tax resident
Question:
Anna Whites have the following receipts and expenses for the year 2021/22. She is a tax resident of Australia.
Receipts | $ |
Salary - financial planner | 80,000 |
Interest | 5,000 |
Rental income | 10,000 |
Entertainment Allowance | 1,500 |
The following assets were sold. They are the only assets Anna has ever sold.
Sale of the family home (22 February 2022) The home was acquired on 18.7.91 for $110,000. | 150,000 |
Sale of vacant land I (25 August 2021) This had been bought on 1.1.85 at a cost of $25,000 with the intention of building her main residence. For various reasons this never occurred and when a good offer was received she sold the land. | 100,000 |
Sale of one rental property (1 July 2021) This property cost $80,000 in June 1985. Anna had bought the property with the intention of renovating it and selling it at a profit. | 130,000 |
Sale of shares I (10 November 2021) These had been bought in February 2000 for $40,000. Brokerage on acquisition was $400 and brokerage on sale was $500. | 51,000 |
Sale of land II (7 June 2022) The land had been acquired in January 1990 at a cost of $85,000. Stamp duty cost $1,488. | 80,000 |
Sale of land II (7 June 2022) These shares had been acquired in November 2020 at a cost of $9,500 | 10,000 |
Sale of holiday house - settlement occurred on 1 July 2021 although the contract has been signed of 1 April 2021 The land on which the holiday home was built had been acquired on 23 April 2000 at a cost of $30,000. Stamp duty was $525. A house costing $130,000 was built in June 2000. Rates and taxes of $2,000 were paid in arrears when the house was sold. | 160,000 |
Expenses | $ |
Bank fees on interest-earning account | 30 |
Commission to collect rental income | 150 |
Entertainment of clients | 800 |
Rates and taxes on rental properties | 2,200 |
Cost of travel to Financial Planners' Association's conventions | 85 |
Registration costs of the above conventions | 790 |
Repairs | |
New washing machine lid in rental property | 120 |
Total repainting of new rental property purchased on 30 June 2022 | 1,800 |
Repainting of the same rental property after the house was vandalized by the first tenants | 1,900 |
Annual Subscriptions | |
Financial Planners’ Association | 140 |
Australian Engineers' Association | 280 |
West Coast Eagles Football Club | 130 |
Donations | |
Australian Liberal Party | 200 |
Royal Perth Hospital | 300 |
Educations | |
**Master of Business Administration expenses at a private university in Perth | |
University fees | 3,800 |
Travel to university for classes from home | 300 |
Travel from university to work | 199 |
Travel from work to university | 260 |
Travel from university to home (traveled to university after work) | 350 |
** Basket weaving course on Saturday afternoons | |
Course cost | 55 |
Travel expenses | 122 |
Calculate Anna’s taxable income and net tax payable for 2021/22. Provide brief reasons for the exclusion of any items from the calculation.
Federal Taxation 2014 Comprehensive
ISBN: 9780133438598
27th Edition
Authors: Timothy J. Rupert, Thomas R. Pope, Kenneth E. Anderson