Tutor’s name: Kayleen Wood
Assignment No.: 2
Section 18 – Academic Misconduct Including Plagiarism) as
Declaration: contained in the SCU Policy Library. I
understand the penalties that
[6.20] explains "Receipts earned from personal services and
employment (also
known as "personal exertion", which encompasses both income from
employment
and services) may be assessable as either ordinary or statutory
income.
Assessable |
900.00 |
385.71 |
1,285.71 |
|
Assessable |
210.00 |
90.00 |
300.00 |
As above
|
Total
|
58,240.00 |
24,960.00 |
|
|
|
Compensation payout for medical expenses The client
has recevied a payout of $50,000 during this financial year for
compensation of medical expenses because of injuries from an
accident.This payment is not assessable under the replacement principal
in s6-5. It states that a receipt of compensation or a reward for
damages takes on the character of the item it is to replace. Therefore
does not have to disclose this as income in tax return.
BHP shares sold on 5th January 2019
|
Assessable |
|
26.54 |
|
120.00 |
60,922.00 |
11,500.00 |
|
Under s 110-35 of ITAA 1997 brokerage fees are a incidental
cost |
Taxable Capital Gain/Carry Forward Loss
|
|
|
an agreed amount of time. The receipt of rent by the lessor
clearly
constitutes ordinary income as it is income from property. The
rental
income received from the daughter is within normal rental rates in
the
Bilinga area, so therefore it is within an arms length transaction and
isn't a
problem renting to a relative as stated in, FCT v Groser, 82 ATC 4478:
13
ATR 445 (see Appendix 2).
1(1), the loss or outgoing must be: incurred in gaining and
producing
assessable income. This expense incurred towards the rental
property
passes the 1st limb of the positive limbs of s 8-1 ITAA97, as it has
incurred
while gaining and producing assessable income using a rental
property.
370.00
1574.66 Calculation for Capital Works Deduction
ITAA 1997-an expense incurred in gaining or
producing assessable income. Therefore, can be
claimed.
|
Non deductable |
5,200.00 |
- |
|
TAX PAYABLE/HANDITAX RECONCILIATION
Total Taxable Income
|
246,730.98 |
As your BHP shares inherited by you from your father are a pre-CGT
asset-04/01/1985, it is shown at its market value at the date of your
fathers’ death on the 15/07/2018. This BHP shares value at the date
shown above was $21.30 per share. These shares were sold on 5/01/2019 at
$26.54 per share totalling $61 042. From the disposal of BHP shares
there was a profit of $49 422. You also sold MYR shares which is a post
CGT asset as it was acquired at cost and your father paid $4.10 per
share. You sold the shares on 05/01/2019 for $1.31 resulting in a loss
of -$26 550. It should have been recommended that you had kept these
shares and waited to sell them at a higher price in the future. Your
loss from the disposal of MYR shares will offset your gain from the BHP
shares sold, giving you a total capital gain of $22 872 .
Your rental property, 4/285 Pacific Parade, Bilinga, 4225 your
expenses associated with it are deductable as they have been necessary
to produce an assessable income. You are also allowed a capital works
deduction on the building of $1 577. Your assets purchased for the
rental are also depreciable and have been added into a depreciation
schedule giving you a deduction of $173. Lastly the interest paid on the
loan is a deductable expense as it was obtained with the purpose of
producing income. Regarding you renting out your property to your
daughter it can sometimes cause problems and the main concern are if the
arrangements made will be stable with the normal practices of rental
properties in the area. Your arrangements however are within normal
rates and won’t be treated any differently.
You have also got additional superannuation amount of $5 200 under a
salary sacrifice agreement with your employer and is reportable by your
employer. This is also considered a personal contribution and is
reportable as 10% of your income is from activities that results in you
being treated as an employee under the superannuation guarantee law.
This means it is not deductible and can not be claimed as an
expense.
Concerning your supporting documentation for your 2019 tax return, it
is required that you keep these for a period of 5 years. I suggest
keeping them in a safe place such as filing system or scan to your
computer. This is a precaution in case the ATO office have any queries
or want proof to support your deduction claims.
Fringe Benefits Tax Assessment Act 1986
Taxation Ruling TR 2004/16
Appendix 1 Appendix 2
