Taxpayer conducts a business using the Jim's Lawn Mowing Franchise and he previously leased a vehicle from a former franchisee.  On 1 August 2021, the taxpayer decided to purchases a new ute costing $40,000 to carry various garden equipment and a new trailer costing $2,000, to carry the debris taken after gardening.

One week later, the taxpayer had painted the ute green using Jim Mowing logo at a cost of $2,000.  This meant the taxpayer, under the Franchise agreement, could then use the ute and trailer to garden under the Jim's Lawn Mowing brand.

The opening balance at 1 July 2021 was $42,000.  At 30 June 2022, the closing balance of the small business general pool was also $42,000.

Using the above information, calculate the maximum deduction available to the SBE taxpayer.

Answer rating: 100% (QA)

To calculate the maximum deduction available to the Small Business Entity SBE taxpayer we need to co... View the full answer