Rocco has received the following receipts for the year ended 30/6/19: Gross wages $80,000 $21.500 tax withheld
Question:
Rocco has received the following receipts for the year ended 30/6/19:
Gross wages $80,000 $21.500 tax withheld from wages
Lottery win $120,000
Prize from amateur baseball team $500
Maintenance payments from ex-spouse $10,000
Loan from bank $15,000
75% Franked dividends $10,000
Capital gain from shares held more than 12 months $10 000
Rocco has a rental property The receipts and expenses associated with his property
for the year ended 30/6/17 were as follows:
Gross rent $27,500
Expenses
Interest on loan used 80% for rental property $22,500
Council rates rental property $1,200
Fine from council for barking dog $800
Repairs to rental property following storm damage $3,500
Other information
Rocco has the following depreciating assets for the rental property held for the whole year
Hot water service acquired on 1/7/2017
Diminishing value method Opening
value = $6,000
Effective life 10 years
Carpets acquired on 1/7/2016
Prime cost method
Opening value = $4,000
Effective life = 8 years
Rocco has a carry forward capital loss from shares of $2,000. He also has a carry forward
capital loss from a collectible of $10,000. The tenant owes rent of $3,500 as at 30/6/15
Required
1) Classify all amounts which are included in assessable income
2) Classify and calculate any amounts which are deductible
3) Calculate Rocco’s taxable income
4) Calculate the balance of Rocco’s assessment
Principles of Operations Management Sustainability and Supply Chain Management
ISBN: 978-0134181981
10th edition
Authors: Jay Heizer, Barry Render, Chuck Munson