Niamh has lived in Melbourne all her life but has always wanted to move to the country,
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Niamh has lived in Melbourne all her life but has always wanted to move to the country, because she wants a large garden in which to grow vegetables and keep animals. In Melbourne, she lives in an apartment which she owns in Docklands near the water Niamh is employed as an accountant and works for a company located in the Melbourne Central Business District the CBD office Her salary for for her work as an accountant is $ per annum. In June Niamh finds the house and land she has always wanted. It is located in Shoreham about hours from the CBD office On July Niamh purchases the house and land in Shoreham for $ She moves in to the Shoreham house on August In order to pay for the house in Shoreham, she borrows $ from the bank at an interest rate of per annum. Her monthly repayments of interest on this loan are $ She also incurs borrowing expenses from the bank of $ Prior to moving to the new home in Shoreham, Niamh negotiates with her employer to work from home two days per week. On the other three days each week, she works in the CBD office. She sets up her home office in Shoreham in the guest bedroom and starts working two days per week from home on November For her home office, Niamh purchases a large antique desk for $effective life years and a new computer and printer for $ each both have effective life of years She buys these items in October and sets up the office ready for use by November For she determines that the running costs electricity heating, lighting and internet usage of her home office are $ She has records to substantiate these costs. On November Niamh has a car provided to her by her employer, and she uses this car to drive to the CBD office from Shoreham three days per week. Her employer has purchased the car for $ Although her employer owns the car, Niamh pays for petrol. In she estimates that she spends $ on petrol to drive between Shoreham and her workplace in the CBD Niamh decides to rent out her Melbourne apartment. She incurs advertising costs of $ to get tenants. Her tenants move in on December She engages an agent to manage the property. The agent charges her $ per month to manage the property. Niamh earns $ per month in rent. Before the tenants move in Niamh spends $ repainting the whole apartment and $ recarpeting the whole of the apartment. Niamhs house in Shoreham is on a large block of land which is covered in trees. As noted above, she wants to grow vegetables and hopes to sell the vegetables. She also wants horses and is considering running horse riding lessons to make some extra money. In February she employs her brother to clear the land to prepare it for planting the vegetables and to prepare it for horses. She pays her brother $ By June no planting has occurred and there is only one horse, which Niamh rides on the weekends. She still plans to grow the vegetables and purchase more horses.Required: Advise Niamh on the deductibility of any losses or outgoings for the income year ending June marks
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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