Question
Abby runs a printing business and leases a building for which she pays rent of $75,000 per annum. During the year ended 30 June 2020,
Abby runs a printing business and leases a building for which she pays rent of $75,000 per annum. During the year ended 30 June 2020, Abby incurred the following expenses: Painting of the exterior of the building at a cost of $12,000. The original paintwork was peeling and mouldy and didn’t represent the kind of look Abby wanted for her business. Re-surfacing of the dirt carpark with a new non-slip cement to fill in pot-holes and create a safer environment for her customers $8,000 Replace torn awning over the front door for $1,500. The replacement awning was made of the same material as the original awning. Payment of $22,000 for a commercial embroidery machine so that Abby could introduce clothing design and printing into her business. The machine was purchased on 10 February 2020 and installed on 26 February 2020.
Advise Abby if the expenses would be deductible with reference to relevant statute or other supporting documents.
Step by Step Solution
3.40 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
This is ne f the riniles underlying the tx rules fr dedutins is tht the inme lernings fr rtiulr ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started