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ACC3TAX Taxation Group Assignment

   

Added on  2020-05-01

9 Pages1991 Words44 Views
TAX CALCULATION AND ADVISETAXABLE INCOME ANALYSIS AND ADVICEFOR JANET BROWNNameCourse: Professor’s NameInstitutionCityDate

TAX CALCULATION AND ADVISEPart A;Refer to the letter from Janet Brown I wish to say that this part of question requires us to calculate tax payable amount as per the requirement set in place by the Tax Law in Australia. Janet Brown tax payable amount is thus calculated by first considering all the revenue income generated in his course of business then subject it to correspondence allowable expenses as solved below.Statement of Taxable the IncomeFor Janet BrownFor The Year Ending 30Th June 2018Gross Income Revenue on renting house property (see note 5) $25000 Capital Gain on Telstra Shares Sale (see note 6) $5000 Gain on sales of dolls (see note 7) $17100 Car Fringe Benefit (see note 3) $25500 Less loss on capital sale of Orica Share (4000) Cumulative Gross Income= $68600Less Allowable ExpensesExpense incurred on roof repair $22000 Expense incurred on Installation of new air condition $4000 Interest paid on the property loan acquired see note 6 $9000Court Fees $25000Damages $10000Total Allowable Deductions=22000+9000+4000+25000+10000= ($70000)

TAX CALCULATION AND ADVISENet Taxable Income Loss or Profit =$68600-$70000= ($(1400)Medicare Care Levy=2%*$68600=$1372 The person's income tax brackets outlined in the Australian Tax Office as shown below iswhat usable for Janet’s Taxation aspect;0-$18,200 - NilJanet is seen to make a loss of $1400 a figure that is far below the bracket range of 0-$18200 thus making her income gains not taxable at all because she has made a loss of $1400. This loss made contributes to Janet failure not even being able to pay the expected Medicare levy of $1372 because there is no revenue at all.As being noticed, I wish to state that Janet’s revenue in place is minimal on the income tax bracket threshold thus why the reason the value is as low as zero hence the only subjection of medical levy that she is entitled. This medical levy claim is according to the information given that she has never adjusted on anything relating to her private medical scheme. Janet is thus enjoying the following equality aspect of tax concept that tends to be fair on the person's income.Notes statement for the solution;Note 1; any earnings or revenue generated must be imposed to tax as per the requirement of Australian Tax expectation. The law requires that all the deductible expenses relating to the revenue should net off the income thus giving a platform for any profit or loss as well as individual income be taxed. Janet case is classified as one of accounting for taxation of an individual income in lieu of respective fringe benefits.Assessable Tax Income=Gross Earning Less Allowable Deductions.

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