Chapter General deductions

How can we solve the following MCQ?

QUESTION 1 1 points Save Answer Which of the following expenses are deductible? Q Laundry costs associated with cleaning a chefs chequered pants A Cost ofa black suit purchased by an accountant his employer (an accounting rm) requires all employees to wear black suits to ' work A Laundry costs associated with the cleaning ofa pair of black pants worn by a hairdresser for work, her employer requires her to ' wear black pants CI None of the above QUESTION 2 1 points Save Answer Expenditure incurred by an employee in performing their employment may be deductible under 5 31. Which of the following is correct (ignoring any substantiation requirements}? C:- Employees are generally able to claim all employmentrelated expenses as deductions under 5 31 C) All clothing costs are normally tax deductible for employees under s 81 F\". Travel to and from work is tax deductible for the employee under s 3-1, if the car is provided by an employer as part ofa salary "' package arrangement CI Laundry costs are deductible for protective clothing when it is related to income producing activities QUESTION 3 1 points Save Answer Which of the following is an expense that is deductible to a business taxpayer? C) A loss of $500 cash for previous daYs takings by an employee on the way to the bank CI International courier expensesr where the cost of sending the items by regular mail is approximately a quarter of the courier cost CI An annual membership fee for a relevant professional body. C) All of the above are deductible business expenses QUESTION 4 1 points Save Answer Susan owns three investment properties in Adelaide. Rather than obtain a separate loan for all three properties, Susan obtained a loan that was secured over her own home. Susan uses property managers to manage the investment properties on her behalf. The property managers charge an upfront letting fee equal to one week's rent and an ongoing management fee of 6.5 per cent. Which of the following statements is TRUE? C) The interest on the loan is not deductible as it is secured over Susan's main residence. CI The letting fees are not deductible as they are capital in nature and add to the cost base of the properties CI The ongoing management fees and letting fees are a deductible expense C) All of the above QUESTION 5 1 points Save Answer Which of the following is an allowable deduction? O The cost of a salesman replacing two suits, which he used only for work. O The cost of $2.50 per week ($120 for the year) for dry cleaning of business suits for an accountant who is required by his employer to wear a suit to work. O Steel capped work boots purchased by a mechanic. O All of the above