Maggie has come to you with the rest of her tax information in order to lodge her 2021 tax return

Interact

Received		$
	Salary from teaching position (tax deducted of $17,000)	78000
	Salary from part-time employment as tertiary lecturer (tax deducted of $7,500)	15,000
	Entertainment allowance from employer (spent in full having lunch other teachers as part of the teachers network)	1,000
	Gift of $500 bottle of wine from Principal, part of a basket of wine and cheeses raffled by the Parents and Friends of the School and won by the Principal	500
	Rent from tenanted property	6,200
	Interest on investments	1,000
	Cash dividend from public company, ($910 imputation credit)	2,100
	During the year a work of art was sold for $5,000 which had originally been purchased for $9,000; and a rare antique for $5,000 that had originally been purchased for $50. Both were sold as part of a redecoration project in Maggies home. In addition a jet-ski was sold for $6,000 which had been originally purchased for $10,000 as COVID restrictions had impacted on Maggies enjoyment.	16,000
Spent
	Tenanted property
	Repairs:
	7-10 July painted property inside and outside	1,200
	1 November plumber connection to sewerage	1,400
	1 December electrician replace faulty wiring	200
	Interest on mortgage	5,500
	Insurance on property	450
	Rates for property	700
	Other expenses
	Purchased books on skills to teach online	290
	Subscription to education journal	838
	Purchase high grade microphone and headset	1,435
	Attended Education conference and was absent for 4 days, registration, meals and accommodation for 2 days valued at $2500 was paid by her school employer but Maggie paid accommodation $400 and meals $100 for the day before and after as the conference started at 9.00 am and finished at 6.00pm on the last day. Maggie used her own car to travel the 600 km round trip.	3,000
	Undertaking an MBA, (not at employers request). Course fees of $3,000 plus $1,000 on materials and travel to residential components	4,000

The following additional information has been provided:

• Tenanted property sold on 31 March 2021. It had been acquired on 1 July 2007 at cost of $200,000. Property was tenanted from 1 August 2007 until sold. Proceeds of sale $724,200, costs of sale $14,200.
• As well as the salary Maggies negotiated for her employer to provide a vehicle. The vehicle which cost $36,000 was available for use every day over the year and travelled 14,000 km of which 8,000 km was for business including to the conference. Operating costs including fuel were $12,400
• Maggie is am Australian resident, not married and not supporting any children.

1. You are tasked to
   1. Calculate the net income tax payable/refundable for Maggie for the year ended 30 June 2021. Your response should be in the format of a report suitable to be included in the work-papers of a client file. The work-papers will set out the tax treatment of each item and any assumptions used in the calculation of the net tax position. The focus should be arriving at the best tax outcome for Maggie.
   2. Identify any additional information that would be required to clarify the assumptions you have made.
   3. Prepare a letter to Maggie advising her of the interim tax position and requesting any additional information.
2. You have been mentoring a junior employee who has worked with you on Maggies tax return. They are keen to learn and have asked you to explain how Maggies employer would treat the various amounts that they have paid Maggie.
   1. Prepare an email to them explaining how these payments would be treated.