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Dar & Sam Dar & Sam Net Tax Payable Statement For FY 2017/2018

   

Added on  2019-10-31

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ESTATE PLANNING & TAXATIONDARREN AND SAMANTHA NET TAXABLE PAY AND TAX ADVISENameCourse: Professor’s NameInstitutionCityDate

ESTATE PLANNING & TAXATIONQuestion 1;Taxable income=Gross income less allowable deductions (expenses relating to the income)Medical levy=2% of gross incomeDarren and Samantha Net Tax Payable StatementFor FY 2017/2018.Gross Income; Darren Samantha Dar & Sam Income Frm Asset= $450*52=$23,400Jim & Gardening Income = $235,000Tupperware Commission= $72,000 Term Deposit= 5%*$40,000=$2000Share of Rental Income Interest (And term deposit) $12,700 $12,700 ($25400)=$23,400+$2,000=$25,400/2=$12,700Total Gross Income = $247,700 $84,700 0Less allowable deductions Interest on Rental property 4.2%*$280,000= ($11,760) Share loan interest on rental pro ($5,880) ($ 5,880) $ 11,760Jims gardening expense ($39,000)Expense on Tupperware ($9,000)Expense on credit card 12%*$2,700= ($324)Total Taxable Income =$247,700-$39,324-$5,880 =$84,700-$9,000-$5,880 0 Net Total Taxable Income = $202,496= $69,820= $0

ESTATE PLANNING & TAXATIONNB; 1. There is a contra of $11,760 and $25,400 on the equally distribution of revenue and expensesfrom the rental property.2. Since the dividend earned are franked in nature we’re not going to subject it to taxation. Darren Samantha Darren SamanthaMedical Levy=2%*$247,700=$4,954 2%*$84,700=$1,694 0Medicare Surcharge rate= 1% 0% 0%Medicare surcharge for Darren=1%*$202,496=$2,024.96 this is because the taxable income ofDarren is within the tier one of $180,001-$210,000 that subjects to 1%,for Samantha and thejoint invest for Darren Samantha is not subjectable to any because it’s below the base tier of$18,0000.Medical Levy Surcharge=Medical Levy plus medical surchargeTotal Medical Levy Surcharge for Darren==$4,954+$2,024.96= $6,978.96 Total Medical Levy Surcharge for Samantha= =$1,694+$0==$1,694Total Medical Levy Surcharge for Darren Samantha =0 Calculation of income tax for individuals uses the below tax brackets; Fletcher(2013 Pg.23)0-$18,200 - Nil$18,201-$37,000 - 19c for each $1 over $ 18,200$37,001-$87,000 - $3,572 plus 32.5c for each $1 over $37,000$87,001-$180,000 - $19,822 plus 37c for each $1 over $87,000

ESTATE PLANNING & TAXATION$180,001 and over - $54,232 plus 45c for each $1 over $180,000For Darren;The taxable income for Darren is $202,496This income therefore lies between the brackets;$180,001 and over - $54,232 plus 45c for each $1 over $180,000Tax payable on this is $54,232 plus 45/100*(202,496-180,000)=$202,496-$180,000=$15,676Plus 45c for each $1 over $180,000=$22,496*0.45=$10,123.2Total Income tax payable for Darren=$10,123.2+$54,232=$64,355.2For Samantha;The taxable income for Samantha is $69,820;Samantha’s income lies between brackets;$37,001-$87,000 - $3,572 plus 32.5c for each $1 over $37,000Tax payable on this, $3,572 plus the cover of $37,000;The over=$69,820-$37,000=$32,820=32.5/100=0.325The over is=$32820*.325=10666.5Total income tax payable for Samantha=$10,666.5+$3,572=$14,238Total Net Tax Payable Income Tax plus Medical Surge Levy;Samantha and Darren since they have private health insurance with HCF fund that is accredited they are eligible to a rebate on family basis, Dennis (2005, Pg.23) therefore they entitled to rebate offset.

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