(General Deductions - Outgoings of a private, domestic or capital nature)
For each of the following resident individual taxpayers, state whether there are any amounts that would be treated as deductions (fully, none or if partially, how much). Give your reasons.
This is my working for this questions can your check my answer if they are right or not please
Scenario Deductible? | If deductible, Reason (Yes/No) amount $ a. Ernie pays $1,900 for an yes $1900 Only if the business does not electricity account got his reimburse him or if the expense is business premises. ran through a sole trader business b. lan pays his home electricity No 0 Because he has a place of work bill of $700. He operates his outside his home and as a result business from his shop cannot claim a home office expense premises but sometimes he and also cannot claim the expense attends to some paperwork because of 'convenience" and planning in his living room while watching television. C. Janice purchases a computer Partially $680 Janice will have to depreciate the for her business costing computer over 5 years at $680 per $3,400 year. ($40-880) d. Fiona pay $750 for her home Partially $450 Fiona can claim $450 of the $750 as phone bill. She has kept 60% is business usage and the records estimating that 60% of remaining amount is personal usage her calls relate to her business. which cannot be claimed. (s.8-11) C. Stan pays $200 every week to No 0 Stan cannot claim his house being have his home cleaned as he is cleaned as it is deemed a personal too busy operating his expense and not business related. business. He does not conduct his business from home but Stan argues that if you didn't hire a cleaner he would not be able to run his business properly. f. Rita pays a total of $12,000 in No 0 Rita cannot claim the child care fees child care fees which enables as it is non business related and in her to continue her full time fact a personal expense. job as a radiologist. g. Tara pays $2,400 for a yearly No 0 Tara cannot claim her travel train ticket which enables her expenses to and from work which is to travel from her home to deemed a private expense, therefore work each day. not deductible. h. Nicole pays $6,000 per year in No 0 Nicole cannot claim a home office board to her parents. She expense, even though she does work takes a lot of work home from carry out work under S.8-1 (1) there her job and completes it at a must be a recognisably area as a real desk in her bedroom. place of business, clearly set apart from the rest of the house
