Stefan's Tax Obligations and Deductions
Added on 2020-02-18
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Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
1TAXATION LAWTable of ContentsLetter of Advice.........................................................................................................................2Answer to requirement 1:...........................................................................................................3Answer to requirement 2:...........................................................................................................3Answer to requirement 3:...........................................................................................................5Reference List:...........................................................................................................................7
2TAXATION LAWLetter of AdviceDear Stefan I would like to draw your kind attention to the consequences of the tax implicationsfrom the transactions that has been incurred by you during the income year. This letter willalso provide you with the list of transactions for which you can claim allowable deductions.As evident from the tax summaries it is found that you disposed off the shares that wereacquired by you. The cost incurred in purchase of shares cannot be claimed as allowabledeductions by you against the present income year since it is considered as the cost of capital.However, the receipt of proceeds from the sale of shares constitute capital gains and capitalgains under the 50 per cent CGT discount method must be adopted by you. In reference to Section 8-1 of the ITAA 1997 you can claim allowable deductions forthe self-education expenses incurred by you since they are incurred by you in relation to thepresent employment and it will further help you in increasing the income earning capacity(Barkoczy, 2016). Other deductions such as expenses relating to shoes and works will beallowed for deductions because they are the part of the your employment. It is found that youincurred interest expenses relating to the loan taken for purchase of house shall be regardedas allowable deductions. Other expenses such as purchase of utensils, income protectioninsurance, tax agent fees and superannuation contribution forms the part of the allowabledeductions. The total amount of tax that is payable by you stands $3432.87 on the totalamount of taxable income of $35473.2. You shall also be liable to claim a low income taxoffset of $445 since your taxable income is below $37,000. I hope the above stated advice are helpful to you in determining your tax liability. Thank You
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