Taxation Law Assignment: Assessment of Income, CGT, and Depreciation

This taxation law assignment provides a comprehensive analysis of various tax-related concepts. It begins with the assessment of assessable income, including spouse's earnings, medical compensation, and superannuation contributions. The assignment then delves into capital gains, presenting a detailed capital gains worksheet and a capital gains tax (CGT) schedule, analyzing gains from share disposals. A rental property schedule is also included, outlining gross rental income, expenses, and net rent. The assignment further examines tax payable, offsets, and levies, providing a depreciation worksheet to calculate asset depreciation. References to relevant taxation laws and rulings are also provided, offering a solid understanding of tax principles and calculations.

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Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID
TABLE OF CONTENT

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S
1. workpapers.......................................................................................................................................1
assessable Income associated to work.....................................................................................................1
Capital Gains........................................................................................................................................1
Capital gains tax (CGT) schedule 2017..................................................................................................5
Rental Property....................................................................................................................................8
Tax payable, offsets and Levies...........................................................................................................9
Depreciation Worksheet......................................................................................................................9
References:.............................................................................................................................................11

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1. WORKPAPERS
ASSESSABLE INCOME ASSOCIATED TO WORK
Particulars Amount in ($)
Earnings of Spouse $64000
Compensation from Medical expenditure $8000
Superannuation $10000
Total $82000
According to “section 6-5 of the Income Tax Assessment Act 1997” an individual
taxpayer deriving income directly from the employment would be considered for assessment
since these income is directly during or in course of employment by the taxpayer (Barkoczy,
2016). Additionally, any form expenditure that is directly related in the course of gaining the
taxable income of the taxpayer would be considered as an allowable deduction. In
determining the taxable income of the taxpayer in the present context there are three elements
that is taken into the considerations they are namely the income of spouse generated from the
remunerations, medical compensation and superannuation contribution which an employer
makes as the portion of salary sacrifice value. The above stated three elements is viewed as
the assessable income the reason behind this is that the remuneration of other half would be
considered to be assessable in the hands of the husband (Collins et al. 2015). In addition to
these the expenditure that is incurred in the form of medical expenses, compensation received
for medical expenses and superannuation would be additionally determined at the time of
deriving the taxable income of the individual taxpayer.
Capital Gains
Capital Gains Worksheet2017
Description
BHP % 100 SHARES -
AUST
Acquisition:
01-06-2016 BHP
shares 2,500 12,500 2 1 12,50
0
Disposal:
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01-12-2016 2,500 50,925
Cost base 12,500 Frozen 12,500
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to
discount) 38,425 /
Frozen Indexation 38,425 /
% 100 SHARES -
AUST
Acquisition:
01-01-2016 CBA 2,000 10,800 2 1 10,80
0
Disposal:
01-12-2016 2,000 1,51,880
Cost base 10,800 Frozen 10,800
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to
discount)
1,41,08
0 /
Frozen Indexation 1,41,08
0 /
COH % 100 SHARES -
AUST
Acquisition:
01-01-2016 COH 1,000 2,900 2 1 2,900
Disposal:
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01-12-2016 1,000 1,24,770
Cost base 2,900 Frozen 2,900
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to
discount)
1,21,87
0 /
Frozen Indexation 1,21,87
0 /
FLT % 100 SHARES -
AUST
Acquisition :
01-01-2016 FLT 1,000 950 2 1 950
Disposal:
01-12-2016 1,000 32,290
Cost base 950 Frozen 950
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to
discount) 31,340 /
Frozen Indexation 31,340 /
MYR % 100 SHARES -
AUST
Acquisition:
01-01-2016 MYR 10,000 41,000 2 1 41,00
0
Disposal:
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01-12-2016 10,000 12,100
Cost base 41,000 Frozen 41,000
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to
discount) 0 /
Frozen Indexation 0 /
% 100 SHARES -
AUST
Acquisition:
01-01-2016 TLS 2,000 6,600 2 1 6,600
Disposal:
01-12-2016 2,000 11,500
Cost base 6,600 Frozen 6,600
- Allowable deductions
+ Assessable income on disposal
Assessable Amount
Reduced cost base 0 Gain
Discountable (Individual - subject to
discount) 4,900 /
Frozen Indexation
4,900 /
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CAPITAL GAINS TAX (CGT) SCHEDULE 2017
Capital Gains Tax Schedule 2017
Tax file number (TFN) 881156217
Taxpayer's name Mr Jinal Shah
Australian Business 84 111 122 223
Number (ABN)
1 Current year capital gains
and capital losses
Capital gain Capital loss
Shares in companies listed on A $ 3,37
,615 K
an Australian securities exchange
Other shares B $ L $
Units in unit trusts listed on C $ M $
an Australian securities exchange
Other units D $ N $
Real estate situated in Australia E $ O $
Other real estate F $ P $
Amount of capital gains from a trust G $
(Including a managed fund)
Collectables H $ Q $
Other CGT assets and any I $ R $
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Other CGT events
Total current year Add the amounts at labels K to
R and write
Capital gains J $ 3,37
,615 the total in item 2 label A -
Total current year
capital losses.
2 Capital losses
Total current year capital losses A $ 0
Total current year net capital losses applied B $ 0
Total prior year net capital losses applied C $ 0
Total capital losses transferred in applied
(only for transfers involving a foreign bank
branch or permanent D $
establishment of a foreign financial entity)
Total capital losses applied E $
Add amounts at B, C and D.
3 Unapplied net capital
losses carried forward
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Net capital losses from collectables carried
forward to later income years A $
Other net capital losses carried forward to
later income years B $
Add amounts at A and B and transfer the
total
to label V - Net capital losses carried
forward
to later income years on your tax return.
4 CGT discount
Total CGT discount applied A $ 0
6 Net capital gain
Net capital gain A $ 3,37
,615
1J less 2E less 4A less 5D (cannot be less
than
zero). Transfer the amount at A to label A -
Net
capital gain on your tax return.
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According to the statement made under the “taxation ruling of 95/35” an individual
making any form of capital gains under the above stated rulings would be regarded as the
capital gains tax (Afik and Lahav 2016). These ruling is particularly associated with the
consequences of the consequences of capital gains tax for the receipt of compensation value.
As stated under the taxation ruling of “taxation ruling of 95/35” on receipt of compensation
by the taxpayer is in respect of the sales considerations made for the assets for the underlying
assets. Alternatively, the compensation of the taxpayer would be viewed as the considerations
that is received in respect of the sale of the asset.
An important considerations regarding the receipt of compensation is that the taxpayer from
the sales amount of the property or from any other source particularly the sale of the
underlying assets would be regarded as revenue from the sales and the assets that are
dissected would be viewed as compensation (Tan, Braithwaite and Reinhart 2016). As
understood from the current situation it can be stated that the transfer of share to the present
shareholder on the demise of the actual shareholder would be regarded as the factual owner
of the asset.
As evident in the current situation it is noticed that shares are held in six different firms
namely, CBA, BHP, COH, MYR and TLS whose sales proceeds will be ascertained
depending upon the sales price and the current market value that is reported by the individual
taxpayer based on the demise. As held in the case of “Inspector of Taxes v. Bensons Hosiery
(Holdings) Pty ltd” the court in its decision have stated that any form of lawful enforceable
rights can be converted in asset under the purview of the capital gains tax legislative (Snape
and De Souza 2016).
Rental Property
Rental Property Schedule for 2017
Address of Rental Property 4/285 Pacific parade
Bilinga QLD
4225
Date property first earned rental income
01/03/2017
Number of weeks property was rented this year
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Private Use %
Ownership
Jinal Shah Shah0001
Income
Gross rental income 400
Other rental related income
Gross Rent 400
Expenses Total Prv %
S Stationery, telephone and postage Shah0001 17,195
N Legal fees Shah0001 1,240
E Body corporate fees Shah0001 1,000
H Council Rates Shah0001 900
U Water charges Shah0001 350
K Insurance Shah0001 685
L Interest on loans Shah0001 7,600
Q Repairs and maintenance Shah0001 699
Total expenses 29,669
Net Rent 29,269 / L
/ L
Tax payable, offsets and Levies
Individual Tax Offsets-2017
Taxpayer Spouse
Taxable Income 0 64,000
Adjusted Reportable Fringe Benefits 605 0
Reportable Super Contributions 10,000 0
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Exempt Pensions or benefits 0 0
Target Foreign Income 0 0
Net Financial Investment Losses and Rental Property Losses 146,226 0
Less - Child Maintenance expenditure 0 0
Adjusted Taxable Income 156,831 64,000
Depreciation Worksheet
WORKSHEET OF DEPRECIATION-2017
Title Building
Transfer to
Private Use % (default private use % for this worksheet)
Instant Asset Write-Off
01/01/2017 Building 140,000
01/01/2017 Stove 750
01/01/2017 HotWater system 850
01/01/2017 Carpet 3,750
01/01/2017 Dishwasher 700
01/01/2017 AC 1,200
01/01/2017 Window curtains 2,700
01/01/2017 Refrigerator 990
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