Advise Lily on each of her expenses listed above. You don't have to give a final total.
Question:
Advise Lily on each of her expenses listed above. You don't have to give a final total. Only explain why (or why not), each expense can be deducted in the 2021 financial year. Refer to legislation.?
On 1 July 2020, Lily bought an investment property which she plans to rent out. During the 2021 tax year, she incurred the following expenses which she hopes to deduct from her Assessable Income:
Initial repairs to fix damage that already existed on the day she bought the property | $50,000 |
Real estate agent's property management fees | $4,000 |
Replace the entire front porch after it became dangerous to use | $35,000 |
Repairs to front door lock after the tenant's key got stuck | $375 |
Stove (bought 1 July 2020, effective life of 5 years, use the Prime Cost Method) | $1,650 |
Expert Answer:
Heres an analysis of whether each expense is deductible for Lily in the 2021 financial year based on ... View the full answer
Management A Practical Introduction
ISBN: 978-0078112713
5th edition
Authors: Angelo Kinicki, Brian Williams
