Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Philip and Kim finally decided not to sell either 151 or 153 Temple Street. They continued to reside in 15 and rent 151 to

image text in transcribed
image text in transcribed
Question Philip and Kim finally decided not to sell either 151 or 153 Temple Street. They continued to reside in 15 and rent 151 to the cousin. They borrowed additional funds and employed a builder to complete the renovation at 155 Temple Street. The property was sold on 1 June 2020 and the gain on sale was $150,000. Philip earned a salary of $98,000 (tax withheld under pay as you go was $25,792) and had job related expenses of $7,800 including $600 for flights and $1,000 for hotel accommodation to attend a conference in Port Douglas in November 2019. Philip's employer paid for the conference registration which included all meals and the cost of travel between home and airport airport and hotel accommodation. The conference was for 5 days, Monday to Friday but the accommodation included an additional 4 days for the weekend before and the weekend after the conference. Philip flew to Port Douglas on the Saturday morning and flew back to Sydney late on the Sunday after the conference. Kim subcontracted plumbing services to a five builders over the year and earned a total of $112,000 with tax withheld under voluntary agreements of $22,400. Business deductions were $17,500. Kim's plumbing van travelled 4,900 km, all business and expenses were $2,100 for registration and insurance, $900, for fuel, $670 for parking fines. Kim joined Philip in Port Douglas for the Interior Design Conference from Tuesday to Sunday, Both Philip and Kim have private health insurance, they have no dependents. Required Advise Philip and Kim of their tax obligations including an estimate of any tax payable or refund entitlement. Your response will have two parts, a report itemising amounts to be included and deducted stating relevant legislation and case law (refer to ILAC style for discussion of any contentious matters) and a calculation of tax payable including any refund if applicable, which will form client working papers (15 Marks), and Kim subcontracted plumbing services to a five builders over the year and earned a total of $112,000 with withheld under voluntary agreements of $22,400. Business deductions were $17,500. Kim's plumbing va travelled 4,900 km, all business and expenses were $2,100 for registration and insurance, $900, for fuel, $6 for parking fines. Kim joined Philip in Port Douglas for the Interior Design Conference from Tuesday Sunday Both Philip and Kim have private health insurance, they have no dependents. Required Advise Philip and Kim of their tax obligations including an estimate of any tax payable or refund entitlement. Your response will have two parts, a report itemising amounts to be included and deducted stating relevant legislation and case law (refer to ILAC style for discussion of any contentious matters) and a calculation of tax payable including any refund if applicable, which will form client working papers (15 Marks), and a draft letter to Philip and Kim summarising their tax position (5 Marks). Both parts can be submitted in a single file. Ensure all calculations are clearly detailed (Total of 20 marks for Part B). Question Philip and Kim finally decided not to sell either 151 or 153 Temple Street. They continued to reside in 15 and rent 151 to the cousin. They borrowed additional funds and employed a builder to complete the renovation at 155 Temple Street. The property was sold on 1 June 2020 and the gain on sale was $150,000. Philip earned a salary of $98,000 (tax withheld under pay as you go was $25,792) and had job related expenses of $7,800 including $600 for flights and $1,000 for hotel accommodation to attend a conference in Port Douglas in November 2019. Philip's employer paid for the conference registration which included all meals and the cost of travel between home and airport airport and hotel accommodation. The conference was for 5 days, Monday to Friday but the accommodation included an additional 4 days for the weekend before and the weekend after the conference. Philip flew to Port Douglas on the Saturday morning and flew back to Sydney late on the Sunday after the conference. Kim subcontracted plumbing services to a five builders over the year and earned a total of $112,000 with tax withheld under voluntary agreements of $22,400. Business deductions were $17,500. Kim's plumbing van travelled 4,900 km, all business and expenses were $2,100 for registration and insurance, $900, for fuel, $670 for parking fines. Kim joined Philip in Port Douglas for the Interior Design Conference from Tuesday to Sunday, Both Philip and Kim have private health insurance, they have no dependents. Required Advise Philip and Kim of their tax obligations including an estimate of any tax payable or refund entitlement. Your response will have two parts, a report itemising amounts to be included and deducted stating relevant legislation and case law (refer to ILAC style for discussion of any contentious matters) and a calculation of tax payable including any refund if applicable, which will form client working papers (15 Marks), and Kim subcontracted plumbing services to a five builders over the year and earned a total of $112,000 with withheld under voluntary agreements of $22,400. Business deductions were $17,500. Kim's plumbing va travelled 4,900 km, all business and expenses were $2,100 for registration and insurance, $900, for fuel, $6 for parking fines. Kim joined Philip in Port Douglas for the Interior Design Conference from Tuesday Sunday Both Philip and Kim have private health insurance, they have no dependents. Required Advise Philip and Kim of their tax obligations including an estimate of any tax payable or refund entitlement. Your response will have two parts, a report itemising amounts to be included and deducted stating relevant legislation and case law (refer to ILAC style for discussion of any contentious matters) and a calculation of tax payable including any refund if applicable, which will form client working papers (15 Marks), and a draft letter to Philip and Kim summarising their tax position (5 Marks). Both parts can be submitted in a single file. Ensure all calculations are clearly detailed (Total of 20 marks for Part B)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

More Books

Students also viewed these Finance questions

Question

Explain the concept of a neural network and its applications.

Answered: 1 week ago