1. Which one of the following is correct in relation to a payment of a salary of a partner in a partnership? Select one: is not a deductible expense by the partnership cannot result in or increase a partnership loss All of these answers are correct Distribution of partnership income.

2.

Jamie purchases a rare coin on 1 April 2013 for $600 and then sells it on 20 August 2019 for $5,000 and has a carry forward capital loss from the 2019 tax year from sale of jewellery of $2,000.

What is Jamie's Net capital gain in 2020?

Select one:

$2,400

None of these

$4,400

$1,200

$2,200 and $2,000 capital loss to carry forward.

3.

What is the decline in value deduction for the year ending 30/6/2020 for a machine purchased for $75,000 on 1/7/2018 under the prime cost if the effective life is 5 years?

Select one:

$0

None of these

$30,000

$15,000

$35,000

4,

Which of the following is an expense that is deductible to a business taxpayer?

Select one:

Extra food bought by a rugby player who needs to bulk up in order to play first grade and get paid more match fees

Interest costs on a loan taken out during a business activity which has not been paid out after the business stopped.

Travel expenses overseas in order to set up a new business

All of these are deductible business expenses.

None of these are deductible business expenses.

5.

Which of the following statements in relation to a sole trader is FALSE?

Select one:

None of these

A sole trader must lodge both an individual and a company tax return.

A sole trader declares their business profit or loss in their personal income tax return.

The income earned by a sole trader is taxed wholly in the individuals hands.

Sole traders have unlimited liability.

Clear my choice

6.

Suzie owns three investment properties in Adelaide. Rather than obtain a separate loan for all three properties, Suzie obtained a loan secured over her own home.

Suzie uses property managers to manage the investment properties on her behalf. The property managers charge an upfront letting fee equal to one weeks rent and an ongoing management fee of $850 per annum.

Which of the following statements is TRUE?

Select one:

The interest on the loan is not deductible as it is secured over Susans main residence.

The letting fees are not deductible as they are capital in nature and add to the cost base of the properties.

The ongoing management fees and letting fees are a deductible expense.

All of the above.

None of these

7.

Justine is a nurse and has approached you to assist her with her current year tax return as she wants to know what she can claim as a tax deduction. She has all of the receipts and has provided you with the following information:

• She needs to wear a nurses uniform to work and has spent $200 on dry cleaning bills.
• She has also purchased non slip shoes required by the hospital for $150.
• She drives to work each day and pays for parking at the hospital at an annual cost of $300.
• She received a speeding fine on the way to work and paid $150
• She has paid union fees of $150 to the nurses union
• She enjoys cooking so undertook a cooking course that cost $350.

Justines allowable deductions for the current tax year are:

Select one:

$900

$500

None of these

$950

$1,300