Mac Hasic is a 40-year-old resident taxpayer who operates an accounting practice. As a sole practitioner, Mac
Question:
Mac Hasic is a 40-year-old resident taxpayer who operates an accounting practice. As a sole practitioner, Mac recognises his income and deductions on a cash basis. He also elects to apply all available small business concessions,
During the 2019/20 tax year, the following transactions relate to his Business:
Receipts (exclude GST)
Receipts from Clients $372,000
Proceeds from the sale of old photocopier on 1/7/19 (currently in the 2,700
general small business pool)
PAYMENTS RELATING TO BUSINESS (excluded GST)
Net Wages paid to employees 94,000
PAYG withheld from wages and forwarded to ATO 24,000
Purchase of new Photocopier (1/7/19, effective life 6 years) 31,000
Rent of Office 62,000
1 July 2019 30 June 2020
Debtors $ 31,500 $ 34,700
General SBE Pool Balance 48,900
PAYG Tax payable to ATO 2,400 3,800
Rent Paid in Advance ($2,000 per month) 2,000 4,000
Calculate Mac's taxable income for 2019/20 tax year.
Is the General SBE pool balance able to be written off in full?
Expert Answer:
Answer to Q611 Various concessions applied Note Please show all workings where necessa... View the full answer
