Assignment Requirements

1. Column 1: Identify and state the issue for each point in the email. The issues should be clearly stated as questions. For example, the first issue may be stated as: Is the $300,000 a year from the government an assessable income? 2. Column 2: State the relevant law for each issue identified, clearly citing the appropriate sections/divisions from the appropriate Acts/legislation. The legislations ITAA36 and ITAA97 are available for free online. 3. Column 3: Discuss the application of the law to the client, i.e. how the law applies to the clients specific situation/issue. Cite any relevant cases. Clearly indicate the $ amount of any tax consequence that may be relevant. You do not need to show your workings in the table, but show your workings at the end of the table. 4. Column 4: Write an overall conclusion. The conclusion should clearly state the tax implications to the client or the relevant party, showing any $ amounts (if relevant).

I need assistance with the following paragraphs from the 'client email':

Dr Litt is also seeking some advice from our firm regarding his personal finances and implications of certain receipts and payments on his individual income tax. Dr Litt is married, with no children. He did not have any private health insurance during the tax year 2022. Dr Litt has an annual income of $650,000 from working at HealthyHeart Pty Ltd. Included in this income is PayG withholding of $20,000 per month.

Dr. Litt is also currently licencing a procedure he developed to GlobHeartz Ltd. for a fixed fee of $10,000 per month, GlobHeartz then licences the right to use the procedure to several hospitals. He is interested to know how these payments might be assessed.

Dr. Litt has recently sold his family home in Norwood. He and his wife had bought this house on 1 February 2001 for $800,000 and sold it for $2 million in February of this year. He and his family have lived in this home continuously except for the period between 1 July 2003 and 1 July 2006, where the property was leased to tenants whist, he was working at Harvard Medical School. Dr Litt is interested to know the tax consequences of this sale.

Dr. Litt also has an investment property in Brighton. The property is rented out for a monthly rent of $820. The property was purchased on 9 March 2007. Dr Litt is planning to move overseas at the beginning of the next year. Therefore, he is contemplating on selling the investment property in the 2023 tax year. He would like to know the tax consequences of a) selling the property before he moves overseas; and b) continuing renting out this property while he moves overseas permanently with his wife.