Group Work (20 marks): This part is to be completed in groups of two or three students and requires detailed advice to the client on the relevant rules and application of the rules to their case. QUESTION: Emma has come to you to prepare her 2023 Personal Tax Return. Emma purchased a house in Victoria on 1 July 2022 for $850,000 as a long-term investment. She decided to rent the house out to a tenant from the date of purchase for $725 per week. Emma provides you with the following information regarding the purchase and related expenses: A loan of $520,000 was taken out on 1 July 2022 for 20 years to purchase the house. She also incurred borrowing costs of $4,450. Interest paid on the loan for the tax year ending on 30 June 2023 would be $25,000. Stamp duty paid in relation to the loan was $26,000. Legal fees paid in relation to the purchase of the property was $3,135 (GST inclusive) The roof of the house was damaged and was replaced at the time of purchase for $28,710 (GST inclusive). One of the bedrooms was repainted on 10 February 2023 at a cost of $1,815 (GST exclusive). The timber floor in the outside laundry was replaced with a concrete floor on 1 April 2023 at a cost of $8,360 (GST Inclusive). The floor was replaced due to water damage caused by a leaking pipe. A gas water heater was purchased on 10 May 2023 for $5,250 (GST inclusive). The heater had an effective life of 10 years. Emma would like you to maximise her claim. LAW6971 Assessment 2 T1 2024 Page 3 of 6 Emma also incurred the following expenses during the 2022/23 tax year: Interest expenses of $3,000 incurred on a margin loan account used to buy and sell income-producing Australian shares. Brokerage fees of $500 incurred in relation to share trading on the margin loan account with the stockbroker. Emily is a long-term investor. Emma received a fully franked dividend from the National Australia Bank of $7,500 on 15 July 2022. She also received a dividend from the Wesfarmers Limited of $2,820 that was franked to 40% on 15 March 2023. She received an unfranked dividend from CSL Limited of $2,225. During the income year Emma sold the following shares: 5,000 shares in JB Hi Fi Limited was sold on 14 March 2023 for $17.10 per share. These shares were purchased $5.10 per share on 17 June 2021 and she paid brokerage fees of $225 on purchase and $360 on the sale of these shares 2,200 shares in Myer Limited was sold on 14 March 2023 for $2.25 per share. These shares were purchased $8.45 per share on 17 June 2022 and she paid brokerage fees of $45 on purchase and $160 on the sale of these shares Emma received a gross salary of $185,000 and her employer remitted PAYG Withholding tax of $57,620 Brokerage fees of $700 incurred in relation to share trading on the margin loan account with the stockbroker. Emily is a long-term investor. Emma has told you that she has reviewed her diary for the 2023 income year and that she undertook 3,325 business kilometres in connection with her employment duties. Donations of $2200 paid to the Salvation Army. Tax fees of $1,650 (GST Inclusive) incurred in preparing the 2021/22 tax return. The tax return was prepared by a registered tax agent. Emma did have private medical insurance with BUPA Health for the entire 2023 income year Emma seeks your advice and wants you to prepare her tax return for the 2022/23 tax year. Please provide her with advice as to what should be included in assessable income and what should be included in allowable deductions. When preparing your advice please ensure you provide the appropriate section reference to the Income Tax Assessment Act 1997 and case law. assist in filling the form too for ato