Define the word property in the context of income from property . Calculate the tax payable
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Question:
Define the word property in the context of "income from property".
Calculate the tax payable / receivable after all relevant offsets and levies (Franking credits, Medicare, LMITO, LTO, etc) for the following resident taxpayers in the 2020 income year.
- RONALDO derived $14000 in fully Franked BHP dividends in addition to $35000 in employment income and $500 general deductions.
- Maria derived $5000 Computershare dividends that were 50% FRANKED. She also had employment of $45000.
- RAJ had a term deposit that matured on the 21st of July 2020 which paid $15000 in interest. He had no other income in the year 2020.
- In Sun Newspaper Ltd v FC of T (1938) 61 CLR 337, Dixon J indicated that there were three matters to take into account in distinguishing between the revenue and capital expenditure. List and briefly discuss these matters.
- In your own words, define the term " Capital gains tax asset".
- In your own words, define the term "Capital gains tax event".
LIAM disposed of several assets during the year ended 30 June 2020. For each of her transactions below. Calculate the capital gain.
- LIAM sold an antique vase on 17 august 2019 for $11000 that she originally purchased for $15000 on 10 June 1998.
- LIAM sold a share in XYZ PTY ltd on 22 October 2019 $23000 that she originally purchased for$6000 on 8 May 2002.
- LIAM sold a block of land on 16 April 2019 for $220,000 that she originally purchased for $15000 on 7 may 1985.
- LIAM sold a painting on 20 June 2019 for $40,000 that she originally purchased on 24 July 1999 for $12000.
- LIAM sold a car value at $5000 that she purchased on 10 February 2020.
- List and briefly discuss the positive and negative limbs of s8-1 ITAA1997.
- In your own words, paraphrase and explain paragraph 4-7 of taxation ruling 97/7.
MEERA is a coffee salesman. Discuss whether the transaction below is deductible for MEERA citing at least one case or section for each.
- Course fees to undertake a coffee course at the BARISTA Coffee academy.
- Laundry for his conventional clothing that he occasionally uses at work.
- Travel expenses when he must travel to rural Victoria to promote a new coffee product.
- Speeding fines.
- Using the PSI rules and TR 2020/D2.explain whether the income of Patrick is personal services income or a personal services business, or whether more information is needed:
- He is a computer consultant that works from his spare bedroom.
- He uses his own equipment as this equipment is only a laptop and some basic software.
- He provides broad quotes for jobs but ultimately charges a day rate of $2500.
- His role as an IT consultant and typically involves:
- Appearances in court as an independent expert.
- Coaching organization staff on the best practice IT system.
- Attempting to hack into large organizations computer systems and provide them feedback on how he did it.
- He has professional indemnity insurance as he is concerned about being held negligent for his actions.
- He sends invoices after the agreed contracted is completed.
- Discuss whether the below transactions are income to MEERA who is a coffee salesman, citing at least one case or section for each answer:
- His wage of $45000.
- Commission paid to him by his employer because he met his target.
- Commissions paid to him by his supplier. He doesn't declare this commission to his employer.
- Cash work he does on the side, as an unregistered tax agent where he charges $50 a tax return.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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