Diana has owned an investment property for several years. In late September, the property became vacant...

 

  

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Diana has owned an investment property for several years. In late September, the property became vacant and she decided to carry out the following work with a view to letting it at a higher rent: Item Repainted the bedrooms as the old paint was now faded 1,200 Replaced broken tiles in the bathroom with new items 220 Demolished the old timber car port and rebuilt with more 5,500 durable colorbond steel sheets Placed a vacancy notice in the local newspaper 120 7,040 Required: Explain the deductibility of each of these items, referencing relevant principles, legislation, case decisions and guidance. PART B Karen is a qualified employee property lawyer based in Melbourne. a) During the income year she attended a two day property law conference in Sydney that was held on a Thursday (all day) and the following Friday morning. She decided to stay for the weekend as she was in Sydney anyway, however she would have attended the conference regardless of any other leisure intention. Karen incurred the following expenses (all including GST) in relation to this trip for which she was not reimbursed: Item Conference attendance 1,000 Return air tickets 300 Taxi fares between home and Melbourne airport 120 Hotel accommodation for 3 nights 750 Food for 4 days 400 Required: Explain the deductibility of each of these items, referencing relevant principles, legislation, case decisions and guidance. (8 marks) b) Karen wanted to upgrade her qualifications in order to obtain improved pay and promotion prospects. However, she wanted to study full time to speed up the process. In February, she resigned and enrolled in four units of a Masters of Law for semester 1. She paid course fees of $12,000. Required: Explain the deductibility of each of the course fees and textbooks, referencing relevant principles, legislation, case decisions and guidance. (4 marks) Diana has owned an investment property for several years. In late September, the property became vacant and she decided to carry out the following work with a view to letting it at a higher rent: Item Repainted the bedrooms as the old paint was now faded 1,200 Replaced broken tiles in the bathroom with new items 220 Demolished the old timber car port and rebuilt with more 5,500 durable colorbond steel sheets Placed a vacancy notice in the local newspaper 120 7,040 Required: Explain the deductibility of each of these items, referencing relevant principles, legislation, case decisions and guidance. PART B Karen is a qualified employee property lawyer based in Melbourne. a) During the income year she attended a two day property law conference in Sydney that was held on a Thursday (all day) and the following Friday morning. She decided to stay for the weekend as she was in Sydney anyway, however she would have attended the conference regardless of any other leisure intention. Karen incurred the following expenses (all including GST) in relation to this trip for which she was not reimbursed: Item Conference attendance 1,000 Return air tickets 300 Taxi fares between home and Melbourne airport 120 Hotel accommodation for 3 nights 750 Food for 4 days 400 Required: Explain the deductibility of each of these items, referencing relevant principles, legislation, case decisions and guidance. (8 marks) b) Karen wanted to upgrade her qualifications in order to obtain improved pay and promotion prospects. However, she wanted to study full time to speed up the process. In February, she resigned and enrolled in four units of a Masters of Law for semester 1. She paid course fees of $12,000. Required: Explain the deductibility of each of the course fees and textbooks, referencing relevant principles, legislation, case decisions and guidance. (4 marks)

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Part A Repaint the bedrooms revenue expenditure deductible Revenue expenditures are recorded in inco... View the full answer