Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Taxation Expert

James and Ann Wilson, two Australian citizens, have been living in Sydney since 1 February 2006. James has been meticulous in keeping records and provides you with the information below. It should be noted that this  information represents his understanding of what was relevant for tax purposes, and you will need to form your judgement on the various matters based on your knowledge of Australian income tax law. If any doubt arises on a particular issue or further information would normally be required, you may assume such details as are necessary to complete the tax return. All such assumptions and the basis of any decisions you make in various matters, must be made clear by appropriate reference to legislation, cases or tax rulings and full discussion where necessary.

Information regarding the 2012/2013 Income tax year

Business:

The data related to  James’ computer consulting business (commenced in Sydney on 1/3/2013) for the period 1/3/2013 to 30/6/2013 is as follows:

Income:
Consulting fees       $120,000
Computer parts       $45,000
Total income          $165,000

The above figures correspond to income earned and credited to accounts. All income relating to the sale of computer parts was collected on 30 June 2011. However included in consulting fee income is an amount of $15,000 invoiced on 29 June 2011 but payment was only received on 6 July 2011. In addition to the above, James has also received a prepayment of consulting fees in the amount of $8,000 for work he will undertake in  August 2011. This amount is refundable if James cannot undertake the work.

1277_expenses.jpg

1) Staff super contributions were paid to the superannuation fund on 10 July 2013

2) Loan repayments include a business loan principal payback of $4,000 and interest of $2,000

3) These running costs relate to the vehicle purchased with the business. The vehicle is not available for private use.

4) The bad debt amount corresponds to a letting fee and property management fees which could not be recovered from the owners. The amount has been written off as a bad debt in the books before 30 June.

5) Includes $500 for a traffic fine incurred by a staff member but reimbursed by the business Personal Income.

Foreign source income:

James holds a term deposit in Japan, with $2,000 interest paid in the financial year.

Australian source income:

Employment income while in Sydney: Gross pay: $42,000; PAYG amounts deducted: $5,500

Personal deductions:

James also incurred the following expenses, which he thinks may be claimed as tax deductions

Computer Society of Australia membership fees: $750

Travel expenses to Sydney to attend a conference on development potentials in the Central NSW region: $400 + Conference entrance fee: $350

Membership to the Newcastle Golf Club: $600; James  considers that membership is vital to make business contacts.

Required:

On the basis of the information that James has provided you and assuming that there are no other circumstances affecting his tax liability, determine James’ taxable income for the 2012/13  income tax year.

In your answer you must provide references to the relevant sections of the ITAA 1936 and ITAA 1997, case law, Tax Rulings or Tax Determinations. You should ignore the possible incidence of GST while answering the above requirements.
 
Formatting Requirements:

The assignment should be presented as follows:

• Font/Font size: Times New Roman (preferred) /12, regular;
• Margin: 2.54 cm (Left, right, top and bottom);
• Page numbers: yes;
• Line Spacing: 1.15;
• Paragraph Style: Justified.

Taxation, Accounting

  • Category:- Taxation
  • Reference No.:- M9777

Have any Question? 


Related Questions in Taxation

Baafm tax assignment real life case study - write briefly

BAAFM TAX ASSIGNMENT Real Life Case study - Write briefly about a RECENT COURT case that happened in Singapore or any other country where the issue was about income  and Capital. EXECUTIVE SUMMARY [ONE PAGE ONLY] INTRODU ...

Assigmn a letter to the board of directorsdecisions

Assigmn: A Letter to the Board of Directors Decisions involving capital expenditures often require managers to weight the costs and benefits of different options related to the same goal or project. For instance, decidin ...

Tax questionsa1 you are the tax director for a fortune 500

TAX QUESTIONS A 1 You are the tax director for a FORTUNE 500 company and the new CFO comes to you and asks you what ASC 740 is? He also asks you to tell him what a deferred tax asset is and when it can be reflected on th ...

Assignment corporation tax accounting projectfollow the

Assignment Corporation Tax Accounting Project Follow the instructions, and make sure you download other required sheet from internet. The only submission required for grading is a complete 2015 U.S. Individual Income Tax ...

Discussion forumnote the video has closed captioning to

DISCUSSION Forum Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu. We are going to examine substitute goods, h ...

From circular 230 compare and contrast the ability to

From Circular 230 compare and contrast the ability to practice before IRS between a CPA and an AFSP tax preparer during 2015

Preferred stock bailouts and personal holding company

"Preferred Stock Bailouts and Personal Holding Company" Please respond to the following: From your analysis of Section 306 in the e-Activity, differentiate between the tax treatment of earnings and profit on the distribu ...

Assignemntspencer duck is single and his eight year old son

Assignemnt Spencer Duck is single and his eight year old son, Mitch, lives with him nine months of the year in his mother, spencer's ex-wife, during the summer months. his mother provides more than half of Mitch's suppor ...

Assignmentchapter 5problem 24at the start of the current

Assignment CHAPTER 5 PROBLEM # 24 At the start of the current year, Blue Corporation (a calendar year taxpayer) has accumulated E & P of $100,000. Blue's current E & P is $60,000, and at the end of the year, it distribut ...

Dq1tom an executive for a large corporation enjoys the

DQ1 Tom, an executive for a large corporation, enjoys the challenge of preparing his tax return. He is aggressive in preparing his return and searches through all the available publications to reduce his tax liability. I ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro