Question 1

Required: Discuss briefly, citing sections, whether the following amounts are deductible for the taxpayer (1 mark each).

The taxpayer purchased an investment property. On 1 July 2021 they took out a 10 year mortgage for this property and paid $2000 in loan application fees.

A business pays a $200 restaurant bill for an important client and the client's husband to celebrate their 10 year wedding anniversary.

The taxpayer (an employee accountant) buys a $250 phone to use purely for work purposes.

An individual taxpayer paid their lawyer (who is a legal practitioner but not a registered tax agent) for advice regarding the tax consequences of selling their investment property.