(Solution) Taxation Law- Assignment

Added on - Dec 2020

Trusted by 2+ million users,
1000+ happy students everyday
Showing pages 1 to 3 of 7 pages
Taxation law
Table of ContentsCalculation of the tax liability on the sale of a house......................................................................1Selling the house in Australia:...................................................................................................1Property used in running a business...........................................................................................1The deductions that can be claimed are:.....................................................................................1
Calculation of the tax liability on the sale of a housePurchase of House in South Melbourne in July 2017:Interest on the loan : $34000 per annumFine imposed by local council: $1000Replacement of old carpet: $ 6000Cost of antique desk for decoration: $ 7250use of car for work purpose: 72%Sale of the house: $ 1,855,000Sale of the antiques desk: $3850Selling the house in Australia:On selling a property in Australia which is used for residential purpose a tax payersis not required to pay capital gain tax (Running your business from home,2019).For suchhome income tax deductions can not be claimed which are associated with the cost whenbuying and selling the a residential home.Renovating a house by the taxpayers and he/she is engaged in the profits makingactivities of the property renovated or a business is carries out form the renovated propertythere on the sale of such property tax implications may arise.Property used in running a businesswhen a tax payers carry on a business from a property which he owns, or haverented or leased(Property used in running a business,2019). The property can be held asa commercial premise like a shop or office or even at own home. The assessee is requiredtoincludes the rental income in tax return,can claim tax deduction fro some of the property expenseliable to capital gain tax on sale of the propertyWhen the home of taxpayer is also principal place of business – that is, you run yourbusiness from home, and a room is set aside exclusively for business activities.The deductions that can be claimed are:the cost of using room utilities,,business phone costs1
Desklib Logo
You are reading a preview
Upload your documents to download or

Become a Desklib member to get access