Is a partnership entitled to claim a deduction in respect of interest paid to a partner on capital the partner contributed to the partnership? Discuss (5 Marks)

 

b) After purchasing an investment property in Padstow and renting it out for a year, Alice discovered that a number of timber joists supporting the outside deck had termite damage and needed to be repaired. She arranged and paid for the damaged joists to be replaced by joists of the same quality timber. This cost a total of $15,000. Advise Alice if she can claim a deduction in respect of the $15,000 she spent on replacing the joists. (5 Marks)

 

c) Mabel owns a pizzeria in Sydney which required a new pizza oven as the existing oven no longer worked. The new oven was purchased on 1 August 2022 for $20,000 and was installed on 1 September 2022 at an additional cost of $500. It has an effective life of 10 years. Calculate the amount that Mabel can claim as a deduction in respect of the new oven under both the prime cost method and diminishing value method.