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Taxation Law ITAA 1997: Assignment

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Added on  2021-06-18

Taxation Law ITAA 1997: Assignment

   Added on 2021-06-18

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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
Taxation Law ITAA 1997: Assignment_1
TAXATION LAW1Table of ContentsAnswer to Requirement A:.........................................................................................................2Answer to requirement B:..........................................................................................................4Letter of Recommendations:......................................................................................................4Reference List:...........................................................................................................................6
Taxation Law ITAA 1997: Assignment_2
TAXATION LAW2Answer to Requirement A: Accordingly, an individual can claim deductions relating to the borrowing expensesrelated with the purchase of the investment property. This includes the interest on borrowingwhere a person can claim an allowable deduction1. Similarly, the loan taken by Emily buff topurchase an investment property would be allowed for deductions. It must be noted thatEmily shall only be allowed to claim deductions relating to the use of $400,000 that was usedfor purchasing the contract investment, Emily would not be allowed to claim deductionsrelating to the rest $200,000 as this was used to pay off Emily home mortgage whichconstitute personal use of loan. An individual is allowed to claim deductions relating to the rental property capitalworks. Similarly, Emily, reported expenses on purchase of new Air conditioner for the rentalproperty and the same would be allowed as deductions. “Section 25-10 of the ITAA 1997”allows a person to claim deductions relating to repairs to the premises. However, anindividual is not allowed to claim deductions for repairs that involve significant improvementor replacement cost incurred on the property2. This is because these expenses are capital innature and not allowed as deductions. As held in “Western Suburbs Cinemas v Federal Commissioner of Taxation” thetaxpayer was denied deductions relating to expenses that are significant in nature or capital innature3. Therefore, Emily would not be allowed to claim deductions under “section 25-10 of1 Coleman, Cynthia and Kerrie Sadiq,Principles Of Taxation Law 20132 Morgan, Annette, Colleen Mortimer and Dale Pinto,A Practical Introduction To AustralianTaxation Law(CCH Australia, 2013)3 Woellner, R. H,Australian Taxation Law Select 2013(CCH Australia, 2013
Taxation Law ITAA 1997: Assignment_3

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