Consider the deductibility of the following items under section 8-1 of the Income Taxation Assessment Act 1997and indicate the basis for your answer.(a)$1,150 council rates paid on a property used 75% for business and 25% as a residence by the owner.(b)$5,500land tax paid on a beach holiday house.(c)Fines paid by bookmaker for conducting illegal off course betting activities.(d)The salary of a housekeeper employed by a taxpayer who conducts a business.(e)Newspapers purchased by an accountant who advises clients on financial and investment matters.(f)Travelling expenses incurred by a school teacher in using his own car to attend sports afternoons. The sporting activities were at a nearby field and the only alternative means of transport was to walk (on average over 5kms).(g)Legal expenses incurred for general advice ($6,000) relating to a clients business operations.(h)Travelling expenses home to work and work to home -$650 for an office worker.Question 3Jenny,who is employed as a tax specialist by the Australian Taxation Office, undertook four subjects in a postgraduate tax masters course in the current financial year. Each subject cost $2,460.She believed that undertaking the course will further her career.Assume these fees are not HECS HELP.Required:Advise Jenny.Question 4On 1 July 2017Fredborrowed$500,000topurchaseabuildingwhich he immediately rented out. His monthly payments, which commencedin July 2017, amountedto $5,000 per month consisting of $4,500 interest and $500 principal.Required:Advise Fred as to what total deductions (if any) he might be able to claim for the tax year ended 30 June 2018.Question 5:On 1 August 2017Jamesborrowed$600,000topurchaseabuildingwhich he immediately rented out. His monthly payments commencing 1 October 2017amounted to $12,000 per month consisting of $9,500 interest and $2,500 principal.Required:Advise James as to what deductions (if any) he might be able to claim for the tax year ended 30 June 2018.

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