A taxpayer purchased land at a cost of $520,000 and constructed new legal offices costing $1,300,000. He

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Question:

A taxpayer purchased land at a cost of $520,000 and constructed new legal offices costing $1,300,000. He paid this construction expenditure on 9 November 2019 and commenced using the building from that date. What amount can the taxpayer claim as a tax deduction (to the nearest $1) in the year ended 30 June 2020 under Div 43 ITAA97?

Select one:

a. $1.82m

b. $1.3m

c. $20,867

d. $19,233