Taxation Law: Work Related Income, Deductions, Capital Gains, Rental Property, and Tax Payable

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
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1TAXATION LAW
Table of Contents
Letter of Advice.........................................................................................................................2
Work Papers...............................................................................................................................4
Work Related Income and Deductions..................................................................................4
Capital Gains:.........................................................................................................................5
Rental Property:.....................................................................................................................5
Other Deductions:..................................................................................................................6
Tax Payable, Offsets and Levies:...........................................................................................7
References:.................................................................................................................................8

2TAXATION LAW
Letter of Advice
To Jigner Gurung
From Tax Consultant
Date: 12-09-2018
Dear Ranjan
We wish seek your attention towards our tax advise which we intend to offer you
based on the information provided by you. The reported amount of gross salary reported by
you stands 120,000 and you further you reported 32,032 as the sum which was tax withheld.
You further reported reimbursement of travel allowance that you incurred during the course
of your employment. You will be eligible to claim an allowable deduction for the tax
withheld amount as the tax offset. You will be eligible for claiming an allowable deduction
for the reportable sum of superannuation contribution.
In later instances it was noticed that you incurred vehicle running expenses. The
proportion of vehicle running expenses that were incurred for business purpose was 82%
while the remaining 18% of the vehicle running expenses were private in nature. Therefore,
you will be allowed to claim an allowable deduction for 82% of the total running expenses.
As stated under to “section 8-1 of the ITAA 1997”, a person is allowed to claim an allowable
deductions relating to expenses that were occurred in generating the assessable income. With
reference to “section 8-1 of the ITAA 1997”, you will be allowed to claim an allowable
deduction for the running cost of the travel expenses.
According to “section 8-1 of the ITAA 1997”, allows a taxpayer for claiming an
allowable deductions relating to the rental property expenses till the period when the property
is available for rent. The expenses incurred by you on rental property such as council, rates,