In this tutorial, you must ignore GST. Question 1 Dave Solomon is 59 years of age and is planning for his retirement. Dave is a barrister at a leading law firm. His gross salary for the 2019-2020 income year totals $345,000. He has decided to sell the majority of his assets as detailed below: A two-storey residence at St Lucia, described in POTL end of chapter question 11.6 (a) A painting, described in POTL end of chapter question 11.6 (b) A parcel of shares, described in POTL end of chapter question 11.6 (d). A unit in a unit complex that he holds as a residential rental property investment. Dave purchased the unit off plan' on 1 January 2012 for $350,000. The unit was tenanted from that day. On 1 August 2019, Dave replaced the stove in the unit with a new one that cost him $1,800. He uses the diminishing value method for income tax purposes, and the effective life of the stove is 12 years. Dave sold the unit on 29 February 2020 for $450,000, and applies an apportionment of 0.2% on the sale of depreciating assets as set out in the ATO Rental properties Guide for rental property owners. During the 2019-2020 income year, Dave received rent totalling $16,800. By 30 June 2019, Dave had claimed Div 43 capital works deductions totalling $52,500. You are required to: Calculate Dave's taxable income for the 20192020 income year. Show all your calculations and provide reasons for your answer, referencing relevant sections of the Income Tax Assessment Acts. In this tutorial, you must ignore GST. Question 1 Dave Solomon is 59 years of age and is planning for his retirement. Dave is a barrister at a leading law firm. His gross salary for the 2019-2020 income year totals $345,000. He has decided to sell the majority of his assets as detailed below: A two-storey residence at St Lucia, described in POTL end of chapter question 11.6 (a) A painting, described in POTL end of chapter question 11.6 (b) A parcel of shares, described in POTL end of chapter question 11.6 (d). A unit in a unit complex that he holds as a residential rental property investment. Dave purchased the unit off plan' on 1 January 2012 for $350,000. The unit was tenanted from that day. On 1 August 2019, Dave replaced the stove in the unit with a new one that cost him $1,800. He uses the diminishing value method for income tax purposes, and the effective life of the stove is 12 years. Dave sold the unit on 29 February 2020 for $450,000, and applies an apportionment of 0.2% on the sale of depreciating assets as set out in the ATO Rental properties Guide for rental property owners. During the 2019-2020 income year, Dave received rent totalling $16,800. By 30 June 2019, Dave had claimed Div 43 capital works deductions totalling $52,500. You are required to: Calculate Dave's taxable income for the 20192020 income year. Show all your calculations and provide reasons for your answer, referencing relevant sections of the Income Tax Assessment Acts
