Taxation Law Report: Workpapers, Capital Gains, and Tax Implications

This taxation law report analyzes various aspects of taxation, including income-related work, capital gains, and rental property. The report examines income derived from employment, considering elements such as spouse's income, superannuation compensation, and medical expenses. It delves into capital gains tax, discussing relevant provisions and the treatment of compensation related to asset disposal, as well as the implications of share transfers upon the death of a shareholder. The report also addresses depreciation, its role in representing the wear and tear of assets, and the use of the instant write-off method for determining tax liabilities. The report references key legal and academic sources to support its analysis.

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Taxation Law
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1. workpapers..........................................................................................................................1
Income Related to Work............................................................................................................1
Capital Gains..........................................................................................................................1
Rental Property.......................................................................................................................8
Tax payable, offsets and Levies.............................................................................................9
Depreciation Worksheet.........................................................................................................9
Reference and bibiliography:...................................................................................................11

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1. WORKPAPERS
WORK INCOME
Expenditures which are in relation to work are treated as taxable income of taxpayers with
respect to the specific year of assessment and the year ended 2017. There are three elements
which are considered for the purpose of identifying the income (Wilkins 2015). They include
spouse’s income as salary and wages, superannuation compensation which is done by the
employer in relation to a sacrificed value of salary and compensation resulting out of medical
expenses. The three elements are treated as taxable income as spouse’s salary can be accessed by
the husband. In addition expenses resulting out of medical treatment and superannuation are also
taken into account for assessing the income which assessable. The income from employment is
regarded as the primary source of income which is derived by the person in a specific period so
that the present position can be boosted (Vann 2016.).
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Capital gains
According to the provisions of “taxation ruling of 95/35” any sort of capital gain which is made
in relation to the ruling is going to be treated as a capital gain tax. The provisions are particularly
in relation to consequences of CGT towards the compensation amount receipt (James 2016). In
addition with respect to these provisions any kind of compensation which the tax payer has
received totally in relation to tax payer ‘s compensation or sale of underlying assets it is going to
be treated as those considerations which are received for disposing the asset (Findeisen and
Sachs 2016)
The compensation which the tax payer has received with respect to any money arising out of
various options such as revenue collected from court proceedings, sale of underlying assets or
the sale of property or dissected assets is going to be treated as compensation. In addition as
depicted from the situation in hand it can be said that the share transfer on the part of the tax
payer which arises when the shareholder dies is going to be considered as the assets real owner.
As stated by Becker, Reimer and Rust (2015), the shares which have been held in five
organizations which are MYR, COH, BHP,TLS and CBA whose sale price along with present
market value as stated by the tax payer in case of death has been used to determine the sale
proceeds. According to the case of “Inspector of Taxes v. Bensons Hosiery (Holdings) Pty ltd”
it had been provided by the court that any form of legally enforceable rights can be used to
account the asset in relation to the CGT legislation as per Bankman et al, (2017)
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Capital Gains
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