Reference no: EM133038509
Question - Trish Curry, a 37-years-old resident taxpayer, purchased an investment property on 1 July 2019 from which she derives rental income. During the 2019/20 tax year, Trish recorded the following transactions in relation to the property:
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Receipts
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Rent Received
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$18,400
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Proceeds of Mortgage from Bank (15-year loan)
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$60,000
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Interest from real Estate Trust Account
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$200
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Payments
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Purchase Price of Property (constructed in 1993 at a cost of $60,000)
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$212,000
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Stamp Duty on Property
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$8,000
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Legal costs - Purchase
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$1,400
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Stamp Duty and legal costs - Mortgage
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$600
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Agents' Commission
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$970
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Bank Fees & charges
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$140
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Mortgage Repayments
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$17,500
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Council Rates
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$840
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Insurance
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$290
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Painting of Bedrooms (on 1 August 2019 - Prior to letting)
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$3,100
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Replacement of carpets (1 April 2020, 5-year effective life)
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$4,200
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Water Rate
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$720
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Other information -
As at 30 June 2019, there was $2,300 of rent outstanding from tenants.
The Mortgage repayments included $9,300 interest.
Trish also derived gross salary for the year of $67,000 from which $16,000 of PAYG Tax was withheld.
Trish has not lodged a Notice of Intent to claim Deduction form with her superannuation fund.
Other amounts paid by Trish during the year included:
-Tax Agent's fee $350
-Donation to local church $200
-Personal Super Contributions $4,000
-Work related travel $210
Trish was covered by adequate private health insurance.
Required -
1. Calculate Trish's net rental income for the 2019/20 tax year.
2. Calculate Trish's taxable income for the 2019/20 tax year.
3. Calculate tax payable by Trish for the 2019/20 tax year.