Details of this Paper

DURING THE CURRENT INCOME TAX YEAR ENDED 30 JUNE,Sarah

Description

solution


Question

DURING THE CURRENT INCOME TAX YEAR ENDED 30 JUNE,Sarah A AUSTRALIAN RESIDENCE RUNS IN NSW HOUSE BULIDING BUSINESS DURING THE YEAR SHE RECEIVE THE FOLLWING DEPOSIT INTO HER;BANK ACCOUNT AND HAS THE FOLLOWING TRANSACTIONS;A. SALES;THIS DOES NOT INCLUDE $307,900 OF ADVANCE PAYMENT FROM CUSTOMERS.THIS IS TREATED AS LIABILITY IN THE BOOKS AND REFUND ARE NEVER PROVIDED. $3808,000;B. CLOSING STOCK AS 30 JUNE 2009 WAS $1150,000 AND THE CLOSING STOCK AS AT 30 JUNE 2010 WAS $1350000(COST?) OR $1850000(MARKET VALUE) THESE AMOUNTS ARE EXCLUDE GST.;C. SHE SUCCESFULLY SUED A RIVA,L BULIDER FOR ILLEGALLY USING A COPY ONE OF HER DESIGN AND RECEIVED $30,000 COMPENSATION. $30,000;D. LOTTERY WINNINGS $23000;DURING THE INCOME TAX YEAR ENDED 30 JUNE SARAH PAYS OUT FOLLOWING EXPENSES;E.STAMP DUTY ON A LOAN TAKEN OUT ON 1/7/09 TO INCREASE WORKING CAPITAL.THE LOAN HAS FOUR YEAR TERM. $12000;F. INTEREST EXPENSES OF $71000 WERE PAID ON THIS LOAN. $71000;G.BULIDING MATERIAL,PETROL, ELECTRICITY AND GAS (ALL SUBJECT TO GST) $915000;H. WAGES $299765;I. LEGAL COST TO SUE THE SAM BULIDER(SEE C ABOVE) $13000;J.GIFTED TO AUSTRALIAN LIBERAL PARTY $100;K. SHE ATTEMPTED TO BUY A BUSINESS AND PAID A DEPOSIT TO EXPAND OPERATIONS INTERSTATE SHE MADE AN OFFER FOR A BUSINESS AND PAID A DEPOSIT BUT WITHDREW THE OFFER AS SHE FOUND OUT ABOUT CERTAIN DUDIOUS DEALINGS REGARDING THAT BUSINESS.SHE INCURRED LEGAL EXPENSE OF 15000 TO DEFEND DAMAGES SOUGHT FROM THE PROSPECTIVE SELLER FOR BREACH OF CONTRACT. $15,000;L. LEASING COSTS OF BUSINESS TRUCKS AND MOTOR VECHILE $ 24,785;M. REPAIRS AND MAINTANCE OF VECHILE PLANT AND EQUIPTMENT $31701;PART 1.2;SARAH?S DEPRICIATION SCHEDULE FOR THE YEAR ENDED 30 JUNE IS SET OUT BELOW ALL ASSETS HAVE 100% BUSINESS USE AND SHE USES THE DIMINSHING VALUE METHOD.;ALL VALUE EXCLUDE GST. NOTE: ALL ASSTES LISTED WERE ACQUIRED BEFORE 10MAY 2006;DEPRIACTING OPENING ADJUST DEP ADD TER DED CLOSING;ASSETS VALUE 1 JULY$ RATE%;1.BENDING;MACHINE 11,478 15%????;2. CHAIN;BLOCK 8890 11.25????;3.LIGHT;CRANE 10125 22.50????;4. PUMP 5642 15????;5COMPRESSOR 897 15????;TOTAL;FIND FOR ALL 5.;ADDITIONS(ADD);TERMINATIONS VALUE(TER);DEDUCTION(DED);CLOSING ADJUSTABLE VALUE 30 JUNE(CLOSIN);ADDITIONALLY ON 1 JULY THE CURRENT TAX YEAR SHE PURCHASED A WINCH FOR $ 10,000 IN NEED OF FIXING UP.;SHE REPLACED THE WORN OUT PARTS AT COST OF $1000 IN JULY FOLLOWING THE REPAIRS SHE THEN STARTED USING THE WINCH ON BULDING SITES ON 1 AUGUST. ALL VALUES EXCLUDE GST.;ALSO SHE PURCHASED A BRICK ELEVATOR ON 1 AUGUST FOR 50,000 ON 1 DECEMBER SHE ACQUIRED VACANT LAND FOR $200000 THE LAND WAS USED AS A CAR PARK FOR HER LEASES VECHILE ALL VALUES EXCLUDE GST.;SHE SOLD THE LIGHT CRANE ON 30 OCTOBER FOR $12000 THE LIGHT CRANE COST $25000 ALL VALUES EXCLUDE GST.;PART1.3;SARAH?S NON BUSINESS CGT TRANSACTION WERE;A) ON 1 JULY 1991 SARAH SIGNED A CONTRACT TO BUY A RENTAL PROPERTY AT A CONTRACT PRICE OF $ 500,000 THE STAMP DUTY WAS 20000 AND THE LEGAL COSTS TO PURCHASE $ 1000 SETTLEMENT AND THE PAYMENT FOR THESE COSTS WERE INCURRED ON 1 AUGUST 1991.;FROM 1 JULY 1919 TO 31 DECEMBER 2004 SHE INCURRED THE FOLLOWING COSTS IN KEEPING THE HOUSE;INTEREST $50,000;REPAIRS $100,000;THE HOUSE WAS NOT ELIGIBLE FOR CAPITAL ALLOWNACE DEDUCTION.;SHE PAID $44,000 FOR A NEW SHED ON 23 MAY 1999.THE SHED WAS ACQUIRED FOR THE PURPOSE OF INCREASING THE SELLING PRICE OF THE PROPERTY SHE CLAIMED $4000 OF CAPITAL ALLOWANCE DEDUCTION FOR THE SHED.;THE $21000 COST OF NEW SWIMMING POOL WAS INCURRED ON 2 MAY 2000. SHE INTIALLY ACQUIRED THEPOOL WITH THE PURPOSE OF INCREASING THE SELLING PRICE OF THE PROPERTY. IN JANUARY 2003 AT THE REQUEST OF THE TENANTS SHE FILLED IN THE POOL WITH DIRT AND PLANTED GRASS OVER THE POOL. SHE CLAIMED $1000 OF CAPITAL ALLOWNCE DEDUCTION FOR THE SHED.;AT THE TIME OF SALE 31 DECEMBER OF THE CURRENT TAX YEAR SHE INCURRED ADVERTISING COSTS OF THE $2000 AND SLAES COMMISION OF $7000 SHE SOLD THE HOUSE FOR $900,000;B. ON 20 AUGUST 1997 SHE ACQUIRED IN HIGH TECH COMPANY IAS FOR $300,000. ON 1 JULY OF THE CURRENT TAX YEAR SHE SOLD THE SHARES FOR $120000 CASH, PLUS THE PURCHASER ASSUMED SARAHS?S LIABILITY OF 20,000 OWING ON THE SHARES.;C. ALSO SHE SOLD A VALUABLE STAMP FOR $ 50,000 IN CASH PLUS SHE ALSO RECEIVED A CAR WORTH $10,000 ON 30 JUNE OF THE CURRENT TAX YEAR SHE WAS GIVEN THE STAMP AS A GIFT BY HER GRANDMOTHER IN JUNE 1988. AT THE TIME OF GIFTING IT HAD A MARKET VALUE OF $ 30,000;D. SHE SOLD A LAPTOP COMPUTER FOR $2000 ON 30 JUNE OF THE CURRENT TAX YEAR THIS WAS USED 60% FOR BUSINESS USE THE COMPUTER COST $5000 AND ADJUSTABLE VALUE ON 30 JUNE 2006 WAS 3000.THIS EXCLUDES GST.;PROVIDE THE FLOOWING;1.1 REASON FOR THE AMOUNTS INCLUDED/EXCLUDED FROM ASSESSABLE INCOME HER HER BUSINESS AND PROVIDE THE FULL DETAIL OF SECTIONS CASES,COMMENTARIES AND AUSTRALIAN TAXATION RULING WHERE APPLICABLE.;1.2 REASON FOR THE AMOUNTS INCLUDED/EXCLUDED FROM THE DEDUTION IN HER BUSINESS. AND PROVIDE THE FULL DETAIL OF SECTIONS CASES,COMMENTARIES AND AUSTRALIAN TAXATION RULING WHERE APPLICABLE.;1.3 A DEPRECIATION SCHEDULE FOR THE INCOME TAX YEAR ENDED 30 JUNE.;1.4 REASON FOR AMOUNTS INCLUDED/EXCLUDED FROM THE DEPRICIATION SCHEDULE AND PROVIDE THE FULL DETAIL OF SECTIONS CASES,COMMENTARIES AND AUSTRALIAN TAXATION RULING WHERE APPLICABLE.;1.5 CALCULATE CAPITAL GAIN OR LOSS IF APPLICABLE UNDER THE ITAA 1997 FOR THE ABOVE CGT TRANSACTION;1.6 CALCULATE THE NET GAIN OR LOSS (NOTE: SARAH HAD CARRY FORWARD CAPITAL LOSSES OF $20,000 FROM THE PREVIOUS TAX YEAR.;1.7 A STATEMENT OF ASSESABLE INCOME AND DEDUCTION TO CALCUALTE SARAH?S TAXABLE INCOME FOR THE INCOME TAX YEAR ENDED 30 JUNE;NOTE: THIS IS QUESTION FROM AUSTRALIAN TAXATION LAW 2010 BY PAUL KENNY NEED ANSWER ACCORDING TO AUSTRALIAN LAW

 

Paper#26434 | Written in 18-Jul-2015

Price : $42
SiteLock