Engagement of critical thinking and interpretation skills to correctly identify the issues to be analysed in the case study.

Deena Maguire is a tax lawyer who regularly travelled overseas for work. After having a baby in late 2015 she took unpaid leave from work to travel around the world. Traveling with an infant required much preparation and a reasonable amount of equipment. Deena enjoyed researching and testing travel gear, and as a consequence she developed a reasonable knowledge about traveling with young kids. In April 2017 Deena had an idea to start a travel blog to share her experiences with other parents and keep memories of her trips. She registered her blogs domain www.babymaguire.com with a paid host server at a cost of $20 per year and frequently posted tips about airlines, kid-friendly hotels and product reviews of the travel gear she used. She also regularly shared her blog photos and the links to her posts on her Instagram account and Facebook page, which generated thousands of likes and substantially increased the number of visitors to her website. In July 2017 a baby pram manufacturer invited Deena to test and write a review on their latest ultra-lightweight travel pram. She would not receive any money for the review however she could keep the pram, which was retailed for $600. In January 2018 a resort in Fiji offered her 1-week free accommodation (valued at $2,000) in exchange for a blog post about her stay.

Offers of that kind became frequent, and in the current income year (2018/19) she estimates having received a total of $42,000 in benefits, $38,000 in advertising fees, and her travel expenses amounted to $14,000. Moreover, to ensure that her Instagram skill is getting better, she enrolled in online course of photography and bought herself fancy camera, which cost her $3,000 and $2,000, respectively. Due to her many views in her videos, she received a lump sum payment of $10,000 from Youtube by the end of financial year.

Required: Advise Deena Maguire on the tax consequences of the above for the income year ending 30 June 2019, applying legislation, case law and tax rulings to support your answer.