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Griffith UNIVERSITY Tax Law 30 June 2019 USE THE STEPS LISTED UNDER EACH HEADING TO HELP YOU ADDRESS THE QUESTION First determine whether the expenses

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Griffith UNIVERSITY Tax Law 30 June 2019 USE THE STEPS LISTED UNDER EACH HEADING TO HELP YOU ADDRESS THE QUESTION First determine whether the expenses incurred by James satisfy either of the positive limbs Section 8-1(1)(b) 2"d Positive - necessarily incurred in carrying on a business Determine whether James would pass or fail the 2" positive limb. Section 8-1(1)(a) 1st Positive - incurred in gaining/producing assessable income Determine whether James would pass or fail the 1" positive limb. Step 1: Is there a LOSS or OUTGOING? Step 2: Is the expense INCURRED in the relevant tax year? Step 3: Is there a NEXUS (connection) between the outgoings and the production of James's assessable income . Identify what type of assessable income James earns and how he produces his assessable income. Discuss what legislation or case law the assessable income satisfies For each expense discuss whether the outgoings are incidental and relevant to James's earning activity. Conclusion: From your application, summarise which outgoings satisfy the firs positive limb. (NOTE: we are only discussing the first positive limb here. We are not yet looking at whether the expenses will fail a negative limb)

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