need answer of 5 & 6 in detail according to australian tax standards with cases and sections mentioned. thanks.
[14 Marks]
Question 5
The Morris Family Trust is a resident discretionary trust with two adult resident beneficiaries. The beneficiaries are Mary and Bruce and they are both presently entitled to a share of the trust income and are not under any legal disabilities. The activities for the trust for the 2015/2016 tax year were as follows:
$
Rent income received from tenant
15,000
Interest from bank deposits
5,000
Unfranked dividends
14,500
The trustee exercised his discretion to distribute the income of the trust as follows:
Mary 50% of trust income.
Bruce 50% of trust income.
Required:
a) Calculate the net income from the trust for the year ended 30.06.2016.
b) Assume that in addition to the trust income Mary received a payment summary from her employer. The payment summary shows that she has received $20,000 in salary. Mary incurred $250 in work related expenses and has kept the necessary records. Calculate Marys taxable income and tax payable for the year ended 30.06.2016.
In your response ensure you state the appropriate legislation, tax rulings or common law cases to support your answer and calculations. [20 marks]
Question 6
Charlotte Mann inherited the family farm on 1 November 2012 upon the death of her uncle. On this date the farm comprised 110 hectares. This property was originally acquired by her uncle in 1984. Charlotte is an underwater filmmaker and is unable to farm the land. Consequently she decided to keep 10 hectares of land but sell the remaining 100 hectares. Charlotte subdivided the 100 hectares of land into 10 farmlets and at 30.06.2016 she sold four farmlets. However at this date she had not received the proceeds from the sale of one of the famlets.
Required Advise Charlotte as to the tax consequences of the above transactions for the year ending 30.06.16. Ensure you state the specific legislation, tax rulings and case law to support your discussion. [20 marks]
9:17 ..4G Practice Exam Questions for AC... 7 breaching the benchmark franking rule during the 2015/2016 franking period. Ensure you state the specific legislation, cases and tax rulings where appropriate to support your calculations and your answer. 114 Marks Question 5 The Morris Family Trust is a resident discretionary trust with two adult resident beneficiaries. The beneficiaries are Mary and Bruce and they are both presently entitled to a share of the trust income and are not under any legal disabilities. The activities for the trust for the 2015/2016 tax year were as follows: Route Infom hunde The trustee exercised his discretion to distribute the income of the trust as follows Mary 50% of trust income. Bruce 50% of trust income Required: Calculate the net income from the trust for the year ended 30.06.2016. Assume that in addition to the trust income Mary received a payment summary from her employer. The payment summary shows that she has received $20,000 in salary. Mary incurred $250 in work related expenses and has kept the necessary records, Calculate Mary's taxable income and tax payable for the year ended 30.06.2016. In your response ensure you state the appropriate legislation, tax rulings or common law cases to support your answer and calculations 120 marks Question 6 Charlotte Mann inherited the family farm on 1 November 2012 upon the death of her uncle. On this date the farm comprised 110 hectares. This property was originally acquired by her uncle in 1984. Charlotte is an underwater filmmaker and is unable to farm the land. Consequently she decided to keep 10 hectares of land but sell the remaining 100 hectares. Charlotte subdivided the 100 hectares of land into 10 farmlets and at 30.06.2016 she sold four farmlets. However at this date she had not received the proceeds from the sale of one of the famlets. Required Advise Charlotte as to the tax consequences of the above transactions for the year ending 30.06.16. Ensure you state the specific legislation, tax rulings and case law to support your discussion. 120 marks 9:17 ..4GD Practice Exam Questions for AC... 7 breaching the benchmark franking rule during the 2015/2016 franking period. Ensure you state the specific legislation, cases and tax rulings where appropriate to support your calculations and your answer. 114 Marks Question 5 The Morris Family Trust is a resident discretionary trust with two adult resident beneficiaries. The beneficiaries are Mary and Bruce and they are both presently entitled to a share of the trust income and are not under any legal disabilities. The activities for the trust for the 2015/2016 tax year were as follows: Reiseroute info hanke 14. The trustee exercised his discretion to distribute the income of the trust as follows Mary 50% of trust income. Bruce 50% of trust income Required: Calculate the net income from the trust for the year ended 30.06.2016. Assume that in addition to the trust income Mary received a payment summary from her employer. The payment summary shows that she has received $20,000 in salary. Mary incurred $250 in work related expenses and has kept the necessary records, Calculate Mary's taxable income and tax payable for the year ended 30.06.2016. In your response ensure you state the appropriate legislation, tax rulings or common law cases to support your answer and calculations 120 marks Question 6 Charlotte Mann inherited the family farm on 1 November 2012 upon the death of her uncle. On this date the farm comprised 110 hectares. This property was originally acquired by her uncle in 1984. Charlotte is an underwater filmmaker and is unable to farm the land. Conseguently she decided to keep 10 hectares of land but sell the remaining 100 hectares. Charlotte subdivided the 100 hectares of land into 10 farmlets and at 30.06.2016 she sold four farmlets. However at this date she had not received the proceeds from the sale of one of the famlets. Required Advise Charlotte as to the tax consequences of the above transactions for the year ending 30.06.16. Ensure you state the specific legislation, tax rulings and case law to support your discussion. 120 marks 9:17 ..4G Practice Exam Questions for AC... 7 breaching the benchmark franking rule during the 2015/2016 franking period. Ensure you state the specific legislation, cases and tax rulings where appropriate to support your calculations and your answer. 114 Marks Question 5 The Morris Family Trust is a resident discretionary trust with two adult resident beneficiaries. The beneficiaries are Mary and Bruce and they are both presently entitled to a share of the trust income and are not under any legal disabilities. The activities for the trust for the 2015/2016 tax year were as follows: Route Infom hunde The trustee exercised his discretion to distribute the income of the trust as follows Mary 50% of trust income. Bruce 50% of trust income Required: Calculate the net income from the trust for the year ended 30.06.2016. Assume that in addition to the trust income Mary received a payment summary from her employer. The payment summary shows that she has received $20,000 in salary. Mary incurred $250 in work related expenses and has kept the necessary records, Calculate Mary's taxable income and tax payable for the year ended 30.06.2016. In your response ensure you state the appropriate legislation, tax rulings or common law cases to support your answer and calculations 120 marks Question 6 Charlotte Mann inherited the family farm on 1 November 2012 upon the death of her uncle. On this date the farm comprised 110 hectares. This property was originally acquired by her uncle in 1984. Charlotte is an underwater filmmaker and is unable to farm the land. Consequently she decided to keep 10 hectares of land but sell the remaining 100 hectares. Charlotte subdivided the 100 hectares of land into 10 farmlets and at 30.06.2016 she sold four farmlets. However at this date she had not received the proceeds from the sale of one of the famlets. Required Advise Charlotte as to the tax consequences of the above transactions for the year ending 30.06.16. Ensure you state the specific legislation, tax rulings and case law to support your discussion. 120 marks 9:17 ..4GD Practice Exam Questions for AC... 7 breaching the benchmark franking rule during the 2015/2016 franking period. Ensure you state the specific legislation, cases and tax rulings where appropriate to support your calculations and your answer. 114 Marks Question 5 The Morris Family Trust is a resident discretionary trust with two adult resident beneficiaries. The beneficiaries are Mary and Bruce and they are both presently entitled to a share of the trust income and are not under any legal disabilities. The activities for the trust for the 2015/2016 tax year were as follows: Reiseroute info hanke 14. The trustee exercised his discretion to distribute the income of the trust as follows Mary 50% of trust income. Bruce 50% of trust income Required: Calculate the net income from the trust for the year ended 30.06.2016. Assume that in addition to the trust income Mary received a payment summary from her employer. The payment summary shows that she has received $20,000 in salary. Mary incurred $250 in work related expenses and has kept the necessary records, Calculate Mary's taxable income and tax payable for the year ended 30.06.2016. In your response ensure you state the appropriate legislation, tax rulings or common law cases to support your answer and calculations 120 marks Question 6 Charlotte Mann inherited the family farm on 1 November 2012 upon the death of her uncle. On this date the farm comprised 110 hectares. This property was originally acquired by her uncle in 1984. Charlotte is an underwater filmmaker and is unable to farm the land. Conseguently she decided to keep 10 hectares of land but sell the remaining 100 hectares. Charlotte subdivided the 100 hectares of land into 10 farmlets and at 30.06.2016 she sold four farmlets. However at this date she had not received the proceeds from the sale of one of the famlets. Required Advise Charlotte as to the tax consequences of the above transactions for the year ending 30.06.16. Ensure you state the specific legislation, tax rulings and case law to support your discussion. 120 marks
