tax/uni question (multiple choice) please help if you think you may know!?
Joseph incurred a number of expenses in relation to his legal practice and investment property for the year ended 30 June 2010: _ He paid 0 on 2...
Joseph incurred a number of expenses in relation to his legal practice and investment
property for the year ended 30 June 2010:
_ He paid 0 on 24 October 2009 to his tax agent to lodge his income tax return for the
2009 income year.
_ He paid 00 in borrowing expenses on 1 February 2010 to his bank for a 12 year loan
to purchase a new rental property that commenced earning income on that day.
_ He paid 50 in insurance premiums on his business premises on 1 May 2010 for
insurance cover to 30 April 2011.
_ He paid 00 for six months supply of stationery to use in his business on 13 June
2010. The stationery was delivered on that day and he had 00 of that stationery on
hand at 30 June 2010.
Assuming that Joseph is not eligible to be a small business entity (SBE) what amount can
Joseph claim as deductions (to the nearest dollar) for the year ended 30 June 2010?
A:91.
B:50.
C:50.
D50.
E:92.
- $600 tax agent fees deductible in the 2010 FY
- $1,200 borrowing expenses deductible over 5 years from the date the loan occurs. $100 deductible in the 2010 financial year. It looks like they want you to use months rather than days to work this out.
- $1,750 prepaid insurance is deductible over 12 months it relates to, of which 2 months fall in the 2010 financial year, ie. $292 deduction.
- Full deduction for the $2,000 spent on stationary.
Total = $2,992…A
Note: The answer would be different is Joseph was eligible for SBE concessions