Destiny Childs is a 57-year-old, single, resident taxpayer. She has appointed you as her tax agent and
Question:
Destiny Childs is a 57-year-old, single, resident taxpayer. She has appointed you as her tax agent and provided you with the following information for the 2019/20 tax year: Net Business Income $ 42,000 Gross Wages (no PAYG tax withheld) $ 10,000 Assessable portion of Net Capital Gain $ 33,000 Net Loss from Rental Property ($ 22,000) Reportable fringe benefits $ 7,000 Destiny does not have any dependents and was NOT covered by private hospital health insurance.
REQUIRED:
(a) Who would you consult if you required advice and guidance to determine any income tax related issues?
(b) Using the Excel template provided by your firm, calculate Destiny's net tax payable or refundable for the 2019/20 tax year. Clearly show all workings for each component of your calculation.
my answer
(b) Calculate Destiny's net tax payable or refundable for the 2019/20 tax year | |||
Note- Please show all workings where necessary | |||
Please write your workings/explanations and answers in Blue cells | |||
Destiny Childs is a 57 year-old, single, a resident taxpayer | |||
Receipt Items | Receipt Amount ($) | Write your Reasons or Workings (if applicable) | Enter receipt amount here $ |
Assessable Income | |||
Net Business Income | 42,000 | Assessable income | 42,000 |
Gross Wages (no PAYG tax withheld) | 10,000 | Assessable income | 10,000 |
Assessable portion of Net Capital Gain | 33,000 | Assessable income | 33,000 |
Net Loss from Rental Property | (22,000) | will be claimed | -22,000 |
Reportable fringe benefits | 7,000 | Not an assessable income (reported under income test) | - |
Total Assessable Income | 63000 | ||
Deduction Items | Expense Amount $ | Write your Reasons or Workings (if applicable) | Enter deduction amount here $ |
Less: Deductions (May not be required) | |||
Total Deductions | 0 | ||
TAXABLE INCOME | 63000 | ||
Tax on taxable income | $3572+32.5%(63000-37000) | 12,022.00 | |
Add: Medicare Levy (if applicable) | 2% of taxable income | 1,260.00 | |
Add: Medicare Levy Surcharge (if applicable) | 63000+7000+22000>90,000 | 700.00 | |
Less: Tax Offsets (If any) | |||
Less: Low Income Tax Offset (if applicable) | 445-1.5%(63000-37000) | -55.00 | |
Less: Low-Middle Income Tax Offset (if applicable) | - 1,080.00 | ||
Less: PAYG tax withheld | - | ||
TAX PAYABLE / (REFUNDABLE) | 12,847.00 |
assessor comment below:
Question 1(b) | Calculation of tax payable/ refundable | Tax payable/ refundable is incorrect, please revise:
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Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill