Himanshu patel is 59 year old Australian Resident ,runs a sole trading business selling imported food items. His business is registered for GST. He also works on a casual basis as an import/export agent at Blue Marlin Pty Ltd (ABN: 89 125 678 968). He has a rental property in Lakemba, Sydney. Himanshu is taking care of his wife Hayali Patel, who has lost eye sight in her left eye 9 months ago, on the 1st of October 2018 as a result of a car accident. Himanshu is solely taking care of Hayali.

His spouce is Hayali Patel (30 July 1989, born),Currently receives disability pension from Centrelink $9,200 for the 2020 tax year. She has no deductions to claim for the 2020 tax year, Himanshu is not covered by a private hospital cover.

Himanshu and Hayali have a joint term deposit account at ANZ. Total interest received from the joint account was $500 for the 2020 financial year. Himanshu has paid $400 to a registered tax agent for preparing his tax return for 2019 tax year. In addition to the above, the following information relates to his employment (Part A), business income/expenses (Part B) and rental receipts/payments (Part C). All expenses have been substantiated unless it states otherwise. Part A: Regarding his employment Employer: Blue Marlin Pty Ltd (ABN: 11 235 365 874) Gross wages for the 1st of July 2019 to the 30th of June 2020: $7,800 (PAYG withheld: $200) He also received $2,000 shift allowance and $800 reimbursement for work related software fees from his employer. Himanshu received a car from employer as a fringe benefit (showing as reportable in his PAYG summary, valued $60,000 not exempt from FBT) Work related allowable deductions to claim (telephone & stationery) $300

Part B: Regarding his Business During the year, Himanshu has had the following transactions in relation to sales, purchases, and inventory (trading stock). Himanshu did not choose Small Business Entity option nor low value pool. Cash received from accounts receivable for credit sales $85,000 Cash paid to accounts payable for purchases of trading stock $43,000 Inventory (trading stock) on 1 July 2019 $7,100 Inventory (trading stock) on 30 June 2020 - at cost $8,400- at market selling $8,600 - at replacement $8,500

Himanshu has taken home some food items from the stock purchased for consumption by his family at total value of $2,500 Ledger balances were as follows (GST inclusive)

1 July 2019 30 June 2020

Accounts receivable $17,600 $19,800

Accounts payable $5,280 $5,830

Additional cash receipts included: Volume rebates from overseas suppliers $3,500 Insurance recovery from the insurance company due to extensive damage caused by a hailstorm and included - Compensation for loss of income $7,900 - Repairs carried out on shop caused by storm damage $2,700 - Medical costs incurred by Himanshu form injuries $900 Capital contributed by Himanshu to expand the business $10,000 Cash payments included: Cash Drawings by Himanshu $3,000 Fines for breach of Australian Customers regulations $900 Net wages to employees $12,000 PAYG withheld from employees and paid to the ATO $2,900 Superannuation for employees $1,230 Superannuation guarantee charge $190 Fringe benefit tax $850 Lease payments on shop fittings and plant equipment $940 PAYG instalments for Himanshu's personal tax commitments $2,500 Fee for maintenance of computer systems - Covering the period 1/4/2020 to 30/9/2020 $1,680 Other tax deductible operating expenses $9,200 Decline in value (see note 1) $

Other information regarding Himanshu's Business Note 1) Himanshu uses plant and equipment in his business as follows. Himanshu wishes a maximum deduction for 2019/20 tax year. Ignore SBE concession. You must show clearly decline value to claim this year and closing adjustable value balance of the each asset in the word report.

Assets Cost ($) Purchase date Effective life Adjustable vale (30/6/2019) Business usage DIV method

Mobile phone ,3,000 ,1/6/2018, 4 years, 2,188 ,60%, Diminishing Value

Office Furniture ,15,000, 1/6/2018, 10 years, 13,375, 100%, Prime Cost

Laptop Computer ,4,000 ,1/8/2020 ,3 years, N,A, 100%

Printer ,150, 1/3/2020 ,2 years , NA,100%

Part C:

Regarding his Rental property Himanshu purchased a house as a residential investment property on the 1st of July 2019. Purchase price of the property was $300,000 comprised of the following payments. All amounts include GST where applicable. Land and buildings $276,800 Depreciable assets adjustable value on the 1st of July 2019 (See Note 1) - Carpets $5,000 - Hot water system electric $1,200 - Ceiling fans $1,600 - Barbecue (fixed) $1,400 - Window blinds internal $8,000 - Window curtains $6,000 $300,000 The previous owner provided a statement to Himanshu certifying that the property was constructed and completed on the 1st ofJanuary 1996 at a construction cost of $100,000. The house was in good condition except that the outside walls required complete repair. Himanshu recorded the following receipts and payments for the 2019/20 tax year in respect of the rental property: Receipts Rent received (net of agent commission withheld $1,250) by 28 June 2020 $23,750 Compensation from Rental bond board for tenants who left and did not pay the rent they owed (see note 2) $1,300 Rent in advance from new tenants on 29 June for the period 1 July to 30 July 2020 $3,000 Insurance recovery for storm damage to roof $2,100 Payments Mortgage repayments to Westpac Bank - principal $4,500 - interest $23,800 Loan application fees to Westpac Bank for a 10-year mortgage loan to buy the house - paid on approval of the loan 1 July 2019 $825 Council & Water rates $3,400 Building Insurance premium $850 Payment to solicitors - for lease preparation fees $150 - to eject tenants for non-payment of rent $375 Repairs - to paint the outside walls of the house, carried out on 10 July 2019 $1,100 Construction costs of brick room to store garbage bins and gardening equipment, carried out on 1 May 2020 $6,000 Garden hose and attachments $165 Travel costs to the rental property for inspections (see Note 3) $830 Pest control costs to eliminate cockroach infestation $280 Payment to a registered tax agent - preparing 2017/18 tax return $170 Payments to the Australian Taxation Office - Additional tax on an amended assessment $400 - Fine for the late lodgment of 2017/18 tax return $760

Other information

Note 1

1) Himanshu will use the Commissioners estimate of effective life for calculation decline in value which can be found under "Residential Property Operators".

Note 2) The rental bond board were only able to pay part of the money owed by the tenants. A further amount of $650 is outstanding. Himanshu is attempting to recover this amount by legal means.

Note 3) Himanshu lives in Sydney, he went to Brisbane by aeroplane to inspect the property and meet with the real estate agents and tenants. Required Himanshu wishes to minimise his income tax for 2019/20. Calculate Himanshu's taxable income for 2019/20. You are required to enter income and deduction details where applicable in the tax return form provided in the excel sheet.