Calculate the medicare payable for a resident individual

Assignment Help Financial Management

Reference no: EM132366196 , Length: word count : 1500

QUESTION 1

Briefly explain the extent, if any, to which each of the following payments made by a trainee accountant, during the current tax year would be an allowable deduction:

a) HECS-HELP $850

b) Travel - work to university $110

c) Books $200

d) Childcare during her evening classes $80

e) Repair to her fridge at home $250

f) Black trousers and shirt required to be worn at the office $145

g) Legal expenses incurred in writing up a new employment contract with a new employer. $300 State any assumptions you have made and provide legislative reference to support your explanation.

QUESTION 2

a) John owns some land and grants a lease to David for seven years, at a premium of $7,000.

b) Deepak is an IT specialist and in his spare time tries to make some extra money investing in shares but he is not so successful. On the 1 September 2018 he bought 10,000 shares in IOOF Pty Ltd for 55 cents and sold them on the 30 June 2019 for 67 cents per share.

At the same time, Deepak also purchased 12,000 shares in Greencross Pty Ltd for $1.67 and decided to also sell them on the 30th of June 2019 as he could see they were drastically falling in value. He sold his Greencross Pty Ltd shares for $1.18 per share. Outline and calculate the net capital gain or loss that Deepak would record in his 2018/19 tax return.

c) Li bought a home in March 2010 for $200,000. In March 2013, she converts the separate garage into an office for her physiotherapy business. The garage comprises 20% of the floor space of the dwelling on the property.

She sells the property in March 2019 for $700,000. Its market value at the time of first using the converted garage for income producing purposes was $400,000. What are the CGT implications for Li of converting her garage on the sale of her home?

d) Explain in your own words the difference between cost base and reduced cost base.

Outline the CGT consequences in each of the above situations for the 2018/19 tax year and state if the 50% discount would be applicable to any of the above transactions?

QUESTION 3

a) Is income earned from illegal means (e.g. drug-dealing, insider trading or theft) assessable income?

b) Calculate the assessable income of a resident taxpayer in the current year if they were to be in receipt of $500 bank interest from their savings account, $10,000 won at the Crown Casino, $2,000 rent earned from a boarder sharing a house. Give reasons, considerations and quote reference to sections of the ITAA in your answer.

c) Would a $500 allowance paid to an employee by an employer be assessable income to the employee? Explain your answer.

d) Calculate the Medicare payable for a resident individual with a taxable income of $20,000, $24,900 and $100,000

e) Calculate the gross tax payable for the taxable income of $25,000, $40,000 and $95,000. (Note Gross tax payable is the amount of tax due before Medicare levy and tax offsets)

REQUIRED: Answer each question above giving consideration to the allocated marked.

Reference no: EM132366196

Questions Cloud

Mixed methods design for desertion : What is the important factors in choosing a mixed methods design for desertion?

Develop an activity that aligns to the chosen strategy : Develop an activity that aligns to the chosen strategy you identified in Step 3 that Mark could do at home. In 250-500 words, describe the activity.

Describe some malware countermeasure elements : What is the difference between machine-executable and macro viruses? Describe some malware countermeasure elements.

Feedback and comments from a training plan : You have received the following feedback and comments from a training plan you implemented in your office.

Calculate the medicare payable for a resident individual : Would a $500 allowance paid to an employee by an employer be assessable income to the employee? Is income earned from illegal means.

Describe how you can use listening and questioning : Describe how you can use listening and questioning techniques to show your understanding of an employees views and feelings

What are the forms of internal and external oversight : What are the forms of Internal and External Oversight? What are the similarities between law enforcement oversight in the UK and the US?

Undertake training and coaching in the workplace : Thoughts and reactions to being one of the employees that were asked to undertake training and coaching in the workplace.

Mentoring and coaching to developing managerial skills : Describe how you can provide specific workplace learning, mentoring and coaching to assist her in developing managerial skills.

User Account

All Pages