Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ellie runs a labour hire firm in which she provides suitably qualified staff to businesses involved in the hospitality industry including hotels, motels and restaurants.

Ellie runs a labour hire firm in which she provides suitably qualified staff to businesses involved in the hospitality industry including hotels, motels and restaurants. She has three full-time staff. She incurred the following expenses in the current tax year ended 30 June in relation to her business: Reimbursements of $7000 paid to her staff to cover actual travel/accommodation expenses but not food and drink incurred by her staff in carrying out their duties during the year. Food and drink costs of $5200 paid to restaurants to entertain prospective clients of the business. Food, drink and accommodation costs of $1700 incurred by Ellie to attend a work related conference in Brisbane. The $1700 incurred consisted of $400 in food costs, $500 for the cost of accommodation and $800 for the cost of the conference. Ellie had to spend two nights in Brisbane to attend the conference. 


Based on these expenses what amount can she claim as a tax deduction for the current tax year ended 30 June?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Based on the information provided Ellie can claim the following expenses as tax deductions for the c... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting

Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey

4th Edition

0730369382, 978-0730369387

More Books

Students also viewed these Accounting questions