Tax - Computation of Income Tax for Assessment Year 2018

Running head: TAX
Tax
Name of the Student:
Name of the University:
Authors Note:

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To,
Mr.Client
Sir,
With all due respect, it is glad to me to inform you that your income tax return for the
assessment year 2018 is prepared and the taxation liability strikes $ 12265.S
to The incomes that are subjected to taxability are discussed as follows:
Salary and your other incomes
When we prepare your tax return, s. This financial your income source was mainly:
- Salary Income ( including the additional benefits that are not taxed earlier)
- Rent received from your investment property will be considered as income (Chalk
et al. 2018).
- Shares that you sold during the year ( commonwealth bank share and others)
- Income received in forms of franked dividends are not liable to be taxed but they
are to be calculated for the rate. If the dividends are partially franked then they are
to be taxed by the remaining portion. (Barnes et al. 2017)
In calculation of the assessable income, all the relevant sections and divisions are taken into
consideration.
Expenses connected to your income
As per Division 8 of the ITAA 1997 (section 8-1(2) and 8-5 (2)) the income tax assessment

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act 1997 all the expenses are allowed as deductible if it its spend for the generation of
income.
- Car expenses incurred while using the car for work purposes
- Personal contribution you paid to superannuation
- Income protection insurance
- Brokerage fees paid when selling the shares
- Repair, and other expenses including the stamp duty , interest on borrowings
and others
 Subscription of magazine.( as it is for personal knowledge development)
is an deductible expense as the Assesse is using this to upgrade the
knowledge of business environment.
Not Deductible
As per the ITAA 1997, the expenses are not allowable as:
Car allowances as the assesse has not kept the logbook therefore not entitled to
avail the deduction under TR 97/7 and under section 8-1 of the ITAA.
Rental property
At the process of computing the rental income only rent of 8 weeks are considered ( many
and june)
In addition to that the depreciation and repair expense are to be deducted As The decline in
value of your assets for your rental property due to wear and tear may also be deducted from
your rent received and may reduce the total income you have received in the year (Taylor and
Richardson 2014).
The expenses regarding the duties and other charges are paid will be deducted from the rental
income.