Alby Benedict $($a single resident taxpayer aged $45)$ owns a restaurant called $$Benoit$.$ He has not previously been elected to be treated under the SBE provisions; however, he would like to minimize his tax obligation. William has provided you with the following information regarding the $2023/2024$ financial year. The figures provided exclude GST$.$ Question$-3$

Alby Benedict $($a single resident taxpayer aged $45)$

owns a restaurant called "Benoit". He has not

previously been elected to be treated under the

SBE provisions; however, he would like to

minimize his tax obligation. William has provided

you with the following information regarding the

$2023/2024$ financial year. The figures provided

exclude GST$.$

Receipts

Receipts of Cash Debtors

$620,000$

Cash Sales

Drawings by Alby

Add

Receipts

Receipts of Cash Debtors $620,000$

Cash Sales $85,000$

Proceeds From Loan $115,000$

Insurance Recovery on Damaged stock $8,300$

Fully Franked Dividends from MITEK Pty Ltd $($Small Business entity$)7,700$

Payments

Payments to creditors $($trading stock$)302,000$

Employee wages $98,000$

PAYG tax withheld from employee$$s wages $6,800$

Drawings by Alby $875$

Purchase of Microwave Oven $(1/8/2023)\_*$effective life $8$ years $3,000$

Purchase of coffee machine $(1/10/2023)\_*$effective life $5$ years $4,000$

Purchase of Heavy$-$duty Pasta Maker $(1/11/2023)\_*$effective life $8$ years $23,000$

Rent $140,000$

Purchase of a ceiling fan $245$

Other deductible expenses $52,000$

Other Balances $30$ June $202330$ June $2024$

Debtors $$6,800$ $$14,100$

Trading Stock $$4,500$ $$8,500$

Creditors $$3,900$ $$15,600$

Rent prepayment $$0$ $$25,000$

Additional information:

$$ Decline in value for all other assets held amounted to $$8,000.$ The adjustable value of these assets as at $1/7/2023$ was $$18000.$

$$ Stock taken home by Alby amounted to $$5600.$

REQUIRED:

a$)$ Using the Excel template provided, calculate Alby$$s taxable income for the $2023/24$ tax year if he chooses to not apply any of the small business concessions.

b$)$ Using the Excel template provided, calculate Alby$$s taxable income for the $2023/24$ tax year if he chooses to apply the small business concessions and make a list of the small business concessions applied.

c$)$ Complete the Individual Tax Return $2024($Please use the provided Tax Return of FY $2023).$ Attach a copy of the tax return to an email to Alby requesting he sign and return the form for lodgment with the ATO and explaining the impact of the SBE concessions used. $($All concessions use should be clearly explained$)$Instructions

Question$-1$

$6$Alby Benedict $($a single resident taxpayer aged $45)$ owns a restaurant called $$Benoit$.$ He has not previously been elected to be treated under the SBE provisions; however, he would like to minimize his tax obligation. William has provided you with the following information regarding the $2023/2024$ financial year. The figures provided exclude GST$.$

Receipts

Receipts of Cash Debtors $620,000$

Cash Sales $85,000$

Proceeds From Loan $115,000$

Insurance Recovery on Damaged stock $8,300$

Fully Franked Dividends from MITEK Pty Ltd $($Small Business entity$)7,700$

Payments

Payments to creditors $($trading stock$)302,000$

Employee wages $98,000$

PAYG tax withheld from employee$$s wages $6,800$

Drawings by Alby $875$

Purchase of Microwave Oven $(1/8/2023)\_*$effective life $8$ years $3,000$

Purchase of coffee machine $(1/10/2023)\_*$effective life $5$ years $4,000$

Purchase of Heavy$-$duty Pasta Maker $(1/11/2023)\_*$effective life $8$ years $23,000$

Rent $140,000$

Purchase of a ceiling fan $245$

Other deductible expenses $52,000$

Other Balances $30$ June $202330$ June $2024$

Debtors $$6,800$ $$14,100$

Trading Stock $$4,500$ $$8,500$

Creditors $$3,900$ $$15,600$

Rent prepayment $$0$ $$25,000$

Additional information:

$$ Decline in value for all other assets held amounted to $$8,000.$ The adjustable value of these assets as at $1/7/2023$ was $$18000.$

$$ Stock taken home by Alby amounted to $$5600.$

REQUIRED:

a$)$ Using the Excel template provided, calculate Alby$$s taxable income for the $2023/24$ tax year if he chooses to not apply any of the small business concessions.

b$)$ Using the Excel template provided, calculate Alby$$s taxable income for the $2023/24$ tax year if he chooses to apply the small business concessions and make a list of the small business concessions applied.