Reference no: EM133060077

AYB 219 Taxation Law - Queensland University of Technology

Part 1

Question A

The following data relates to ABC, a resident individual taxpayer:

*Note: Deductions represents all deductions except superannuation, gifts and losses of previous years.

In 2016/17, ABC had capital loss $8,000 from sale of rental property. ABC does not have any other capital gain.

Required
For each income year, determine taxable income for ABC and any losses carried forward.

Question B

Harry Weasley has operated a bubotuber distributorship since 2017/18.

*Note: Deductions represents all deductions except superannuation and losses of previous years.

Required
For each tax year, determine Harry's taxable income and any losses that may be carried forward.

Part 2

Activity 1: Toby runs a hardware store
A. On 23 June he pays $100 cash for stationery
B. In May he orders paint for the store which is delivered on 30 June with an invoice for$2,876 to be paid within 14 days. Are these expenses incurred in the current tax year per s 8-1?

Activity 2: A television presenter, Silvio, has to be presented impeccably and incurs great expense in relation to suits, hair colouring and cuts and make-up products.
Are these costs an allowable deduction under section 8-1 ITAA 1997?

Activity 3: Jade, a government employee was granted a transfer from Adelaide to Perth and made several trips to find and purchase a new home in Perth.
Can Jade claim these travel expenses under s8-1 ITAA 1997?

Activity 4: A self employed doctor is on call for twelve hour shifts at least ten times a month for accident and emergency duties and on call for 2 days per week for other duties. Her partner looks after the children. When the taxpayer's partner is away she employs a carer. Is she entitled to a deduction for the carer under s8-1 ITAA 1997?

Activity 5: Ricardo operates an accounting business as a sole trader and sponsors yacht racing as it will benefit his business through the advertising. He pays $15,000 for the costs of repairs, spare parts and safety clothing. The yacht and the clothing and caps worn by the sailors will carry his business name. Can Ricardo claim expenses sponsoring yacht under s8-1?

Activity 6: Duck Hollow winery acquires a water entitlement For $1000,000 to use a specified amount of river water each year for an indefinite period. Is the $100,000 an allowable deduction under section 8-1?