Taxation Law: Analysis of Partnership Income and Taxation

This report presents a comprehensive analysis of a taxation law assignment focused on partnership income. It includes the calculation of net income for a partnership, detailing both income and allowable deductions, such as rent, food costs, salaries, and superannuation contributions. The report provides an accounting statement showing income and expenses, alongside the calculation of net income, including details of bank loans, partner salaries, and interest on drawings. The assignment references key sections of the ITAA 1997 and provides a bibliography of relevant taxation law resources, including the works of Barkoczy and Woellner et al. This detailed analysis provides a clear understanding of the financial aspects and taxation of partnerships.

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

1TAXATION LAW
Table of Contents
Answer to Part C:.......................................................................................................................2
Bibliography:..............................................................................................................................3

2TAXATION LAW
Answer to Part C:
Computation of Net Income from Partnerships:
Statement showing Calculation of Income from Partnership
For the year ended 30 June 2017
Particulars Sections Amount
($)
Amount
($)
Fees Received
Section 6-5 of ITAA
1997 350000
Gross Total Income 350000
Expenses eligible as deduction:
Rent of training venue
Section 8-1 of ITAA
1997 35500
Cost of foods used in cooking classes
Section 8-1 of ITAA
1997 5600
Salary of part time chefs
Section 8-1 of ITAA
1997 125000
Superannuation contribution for part-time chefs
Section 8-1 of ITAA
1997 11876
Bank loan repayments principal
Section 8-1 of ITAA
1997 2800
Bank loan repayments interest
Section 8-1 of ITAA
1997 1500
Cost incurred on attending Seminar
Section 8-1 of ITAA
1997 1000
Gross Total Expenditure from partnership
business 183276
Net income of the partnership in the income
year 166724
Accounting Statement:
Accounting Statement of Income from Partnership
For the year ended 30 June 2017

3TAXATION LAW
Particulars Amount ($) Amount ($)
Fees Received 350000
Gross Total Income 350000
Bank Loan 55000
Loan from Judy 45000
Interest on Drawing 500
Interest on Drawing 750
Total Receipts 451250
Expenses eligible as deduction:
Rent of training venue 35500
Cost of foods used in cooking classes 5600
Salary of part time chefs 125000
Partners Salary 95000
Interest on Capital 4500
Drawings 18000
Superannuation contribution for part-time chefs 11876
Bank loan repayments principal 2800
Bank loan repayments interest 1500

4TAXATION LAW
Cost incurred on attending Seminar 1000
Gross Total Expenditure from partnership business 300776
Net income of the partnership firm for the income year 150474