Consider the deductibility of the following items under section 8-1 of the Income Taxation Assessment Act 1997 and indicate the basis for your answer.

(a) $1,150 council rates paid on a property used 75% for business and 25% as a residence by the owner.

(b) $5,500 land tax paid on a beach holiday house.

(c) Fines paid by bookmaker for conducting illegal off course betting activities.

(d) The salary of a housekeeper employed by a taxpayer who conducts a business.

Answer rating: 100% (QA)

Australias taxation law specifically Section 81 of the Income Tax Assessment Act 1997 ITAA 1997 governs the deductibility of various business expenses ... View the full answer