CASE STUDY $-$ VERSION $3$

Alaia Docherty is a single resident taxpayer who is employed as a tour guide by Ocean World. Alaia also holds investments including

shares and real estate and has provided details of transactions that she believes relate to the $2023$ income year.

You are required to provide the following information to assist with the preparation of Alaia's $2023$ income tax return:

PART A

Calculate Alaia's Net Capital Gain.

Identify the relevant section reference for any exemption or exclusion.

Clearly outline all steps in the calculation.

PART B

Calculate Alaia's Assessable Income.

Identify the relevant section reference for each inclusion or exclusion.

Clearly show all necessary workings.

PART C

Calculate Alaia's Allowable Deductions.

Identify the relevant section references for each inclusion or exclusion.

Clearly show all workings.

Apply any available alternatives to obtain the maximum deduction available.

PART D

Calculate Alaia's net tax payable or refund due.

Clearly show all workings.

RECEIPTS DURING $2022/23$

$\backslash$table$[[$DATE$,$DESCRIPTION,$$,],[$FULL YEAR,Net Wages,$68\mathrm{.}700,$PAYGW totalled $$23\mathrm{.}300],[$FULL YEAR,Rent from property in Melbourne,$31\mathrm{.}000,$Rent totalling $$2\mathrm{.}500$ was outstanding as at $30^($th $)$ June $2023],[$FULL YEAR,Uniform allowance,$500,],[$FULL YEAR,Part$-$time wages from Army Reserves,$5\mathrm{.}000,$No PAYGW$],[07/08/22,$Dividend from Tepid Ltd$,3\mathrm{.}500,60\%$ franked at $30\%$ tax rate$],[14/09/22,$Reimbursement of work travel costs,$1,200,$Relates to travel to industry conference$],[05/10/22,$Proceeds from sale of shares in Stable Ltd$,7\mathrm{.}000,$Originally purchased in $2012$ for $$5\mathrm{.}500],[01/12/22,$Dividend from Performance Auto Ltd$,5\mathrm{.}600,$Fully franked at $30\%$ tax rate$],[19/02/23,$Proceeds from sale of family antique,$15\mathrm{.}000,\backslash$table$[[$Originally acquired in $2005.],[$Acquired as a gift from parents at no cost$.],[$Market value when acquired $$8\mathrm{.}000.]]],[15/04/23,$Proceeds from sale of shares in Surging Ltd$,3\mathrm{.}000,$Purchased in August $2022($refer to payments$)],[30/06/23,$Net interest from bank,$530,$PAYGW of $$470$ for forgetting to provide Tax File Number$]]$

OTHER INFORMATION

On $1$ May $2023.$ Alaia gave an item of jewellery to her sister as a gift. The jewellery had cost Alaia $$400$ in $2020$ and the current market value was $$300.$

Alaia has a capital loss of $$900$ brought forward from a sale of shares in $2021.$

PAYMENTS DURING $2022/23$

$\backslash$table$[[$DATE$,$DESCRIPTION,NOTES,$],[$FULL YEAR,Private Hospital Insurance Premiums,$4,000,$Reduced premium option taken$],[$FULL YEAR,Prescription glasses,$700,$Necessary to allow Alaia to see clearly at work$],[$FULL YEAR,Purchase of industry magazines relating to tourism,$160,\backslash$table$[[$No receipts kept.$],[$Each magazine cost $$8]]],[$FULL YEAR,Mobile phone account,$800,$Records indicate $50\%$ work related$],[$FULL YEAR,Income Activity Statement quarterly instalments,$10,000,$PAYGl$],[18/08/22,$Purchase of shares in Surging Ltd$,1,600,$Sold in April $2023($refer receipts$)],[27/08/22,$Purchase of compulsory uniform,$400,],[01/10/22,\backslash$table$[[$Replacement of gate with metal security grille at$],[$rental property$]],800,],[01/10/22,$Repair of stone fence at rental property,$700,],[01/12/22,$Payment of annual building insurance,$2,600,$$$1,000$ for private residence: $$1,600$ for rental property$],[01/02/23,$Purchase of new oven for rental property,$2,000,$Effective life of $10$ years$],[09/05/23,$Payment of penalty for late lodgement of tax return,$550,]]$

OTHER INFORMATION

a$)$ Alaia had incurred borrowing costs of $$3\mathrm{.}000$ in $2021$ when she bought her Melbourne property.

b$)$ Alaia incurred interest of $$15\mathrm{.}400$ on her rental property mortgage during the year.