Taxation: Letter of Advice, Work Papers, Depreciation Worksheet, and Tax Payable

Running head: TAXATION
Taxation
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION
Table of Contents
Letter of Advice:........................................................................................................................2
Work Papers:..............................................................................................................................3
Work Related Income and Deductions:.................................................................................3
Work related Car Expenses:.......................................................................................................4
Capital Gains:.........................................................................................................................5
Rental Property:.....................................................................................................................5
Depreciation Worksheet:........................................................................................................6
Income and Deduction from Other Sources:..........................................................................6
Tax Payable, Offsets and Levies:...........................................................................................7
References:.................................................................................................................................8

2TAXATION
Letter of Advice:
To Santosh
From Tax Advisors
Date: 27th January 2019
Dear Santosh
The present letter is directed to address your taxation related matters based on the
transactions reported by you. We wish to inform you that the gross salary of $140,000
received by you amounts to ordinary income under the ordinary concepts of “section 6-5,
ITAA 1997”. Your employer also withheld tax from your gross salary however you can claim
in income tax offset for the amount withheld from your gross pay to reduce your tax liability.
Furthermore you also received a superannuation contribution of $12,000 from your
employer. The amounts will be treated as reportable fringe benefit and it is not included for
assessment. You reported the dividend income from the shares of CBA, COH, TLS and FLT.
These dividend income are included for assessment based on “section 44, ITAA 1936” as
statutory income. While the franking credits attached to the franked dividends are assessable
as statutory income under “section 207-20 (11), ITAA 1997” and the same can claimed as tax
offset by you.
You sold 8000 inherit shares at the rate of $25.63. The shares were inherited on 1st
December 2017 which is less than twelve months. Therefore, the discounted method is not
applicable to this CGT event under “section 115-40, ITAA 1997”. Whereas the sale proceeds
from MYR shares yielded you capital loss. The loss from this shares can be offset against the
gains made from BHP shares.