1. Carmen works as a nurse and often relies on a special overnight babysitting service to care for her baby while she works night shifts.

Carmen pays $100 for each occasion she uses this service. Which of the following statements is most accurate?

Select one:

Carmen cannot claim this expense as a deduction because of ITAA97 s 8-2(b).

Carmen can claim this expense as a deduction because of ITAA97 s 8-1(a).

Carmen cannot claim this expense as a deduction because of ITAA97 s 8-1(b).

Carmen cannot claim this expense as a deduction because it is a capital expense.

2. Which of the following is TRUE in relation to section 8-1 of ITAA97?

Select one:

To be allowable as a deduction, expenses need only meet the Incidental and Relevant test

To be allowable as a deduction, expenses need only avoid the negative limb of section 8-1

To be allowable as a deduction, expenses need only meet the nexus test

To be allowable as a deduction, expenses need only meet the positive limb of section 8-1

To be allowable as a deduction, expenses must meet the positive limb AND avoid the negative limb of section 8-1

Carmen can claim this expense as a deduction because there is a connection between the expense and earning her assessable income.

3. What is the difference between expenses classified as General and those classified as Specific type expenses?