general deductions question, Taxation

Assignment Help:
Simon works as a chiropractor for a small partnership of three other professionals who employ him to work in the office four days each week. Simon earns over $90,000 per year. Each practitioner in the main practice is required to lease a paging unit themselves, so the practice secretary can contact each of them in an emergency situation. The partners of the practice, have co-signed a business loan to meet the costs of starting this practice, including Simon, as they are considering making him a partner. The loan is for $60,000 only and it has been taken out over 5 years at the reasonable interest rate of 8% per annum.

On the fifth day of each week and two evenings each week Simon travels 30 kilometres a private hospital where he takes appointments from staff and patients in a small staff lounge he pays by the hour to use. Simon spent approximately $4,000 on travelling between the practice and the hospital in the last year. The hourly rate is $120. Simon must transport his folding treatment bed and other equipment he uses, between the hospital and the main practice.


There is a uniform Simon is expected to wear whilst at the practice. Simon has this uniform dry-cleaned regularly and last year needed to replace items of uniform. Simon spent $3,500 on his uniform last year.

In June Simon had attempted to clean up the mess one of the partners, the osteopath, had left in the office they shared. Simon fell from the a ladder as he was moving boxes from the top shelf of the bookshelf and suffered injuries which prevents him from working for longer than 6 hours in any day. As he cannot work a full day the partners have terminated Simon''s employment with them.
Simon commences legal proceedings against the partnership for terminating his employment and for injuries he has suffered due to the alleged negligence of her employer as well as seeking to be released from the business loan.

Simon is offered $200,000 for his injuries and also four annual payments of $15,000 each in respect of the termination of his employment.

Advise Simon of the taxation consequences of these transactions for the year, including if Simon were to accept the offer. Would your answer be any different if Simon''s employer offered to pay a lump sum of $195,000 in return for Simon entering an agreement releasing any rights she may have against her employer?

Advise Simon and the practice of the taxation consequences of these transactions for the year with reference to the legislation, rulings and australian case law.

Related Discussions:- general deductions question

Tax return.., need help with tax return assignment

need help with tax return assignment

Compute income tax, Assume that a large copy machine is being purchased by ...

Assume that a large copy machine is being purchased by your employer. the cost is 200.000$. the manufacturer claims it has a useful life of 8 years. this machine will lower operati

Us tax questions, zainab ali -  i uploaded the questions that i want u...

zainab ali -  i uploaded the questions that i want u to solve it . please let me know how much is it and then i will download the details ..  also please i want U.S. tutoring

Recognition of deferred tax liabilities, What is the amount of tax expense?...

What is the amount of tax expense? Describe the controversy with respect to the recognition of deferred tax liabilities?

Calculate indicators of tax burden and financial services , Questions 1...

Questions 1. Knowledge a common feature of the enterprise: the legal form of activity, history of creation, especially business, prospects, familiarization with the documents g

Calculate nominal interest rate, You have been offered a unique investment ...

You have been offered a unique investment opportunity today; you will receive $500 one year from now. If you invest $10,000 today, you will receive $500 one year from now, $1500 tw

Tax file, Carol is a successful physician who owns 100% of her incorporated...

Carol is a successful physician who owns 100% of her incorporated medical practice. She and her husband, Jared, are considering the purchase of a commercial office building located

Example of tax file, Research Problem 2: Carol is a successful physician wh...

Research Problem 2: Carol is a successful physician who owns 100% of her incorporated medical practice. She and her husband, Jared, are considering the purchase of a commercial off

Business purpose test, Assume that Zorn received only $24,000 salary during...

Assume that Zorn received only $24,000 salary during the period October 1 through December 31, 2013. What would be the consequences to Zorn, Inc.?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd