Q2.

(General Deductions - Outgoings of a private, domestic or capital nature)

For each of the following resident individual taxpayers, state whether there are any amounts that would be treated as deductions (fully, none or if partially, how much). Give your reasons.

Scenario Deductible? | If deductible, Reason (Yes/No) amount $ a. Ernie pays $1,900 for an electricity account got his business premises. b. lan pays his home electricity bill of $700. He operates his business from his shop premises but sometimes he attends to some paperwork and planning in his living room while watching television. C. Janice purchases a computer for her business costing $3,400 d. Fiona pay $750 for her home phone bill. She has kept records estimating that 60% of her calls relate to her business e. Stan pays $200 every week to have his home cleaned as he is too busy operating his business. He does not conduct his business from home but Stan argues that if you didn't hire a cleaner he would not be able to run his business properly. f. Rita pays a total of $12,000 in child care fees which enables her to continue her full time job as a radiologist. Tara pays $2,400 for a yearly train ticket which enables her to travel from her home to work each day. h. Nicole pays $6,000 per year in board to her parents. She takes a lot of work home from her job and completes it at a desk in her bedroom