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Rental Property, Capital Allowances Alf Ericsson, a resident Australian taxpayer, owns a house in Sydney from which he derives rental income. During the tax year,
Rental Property, Capital Allowances | |||||||||||
Alf Ericsson, a resident Australian taxpayer, owns a house in Sydney from which he derives rental income. | |||||||||||
During the tax year, Alf had the following transactions in relation to the property: | |||||||||||
RECEIPTS | $ | ||||||||||
Rent Received (net of $940 agent's commission) | 24,660 | ||||||||||
Water Rates Recovered | 515 | ||||||||||
Lease Preparation Fee Recovered | 15 | ||||||||||
PAYMENTS | |||||||||||
Agents' Commission | 940 | ||||||||||
Letting Fee | 300 | ||||||||||
Lease Preparation Fee | 30 | ||||||||||
Bank Charges | 83 | ||||||||||
Mortgage Repayments | 12,800 | ||||||||||
Council Rates | 1,220 | ||||||||||
PAYG tax instalments paid | 4,200 | ||||||||||
Insurance | 410 | ||||||||||
Land Tax | 1,930 | ||||||||||
Replacement of broken window (1 May 2024, effective life 5 years) | 205 | ||||||||||
Air Conditioning (28 February 2024, effective life 10 years) | 2,700 | ||||||||||
New Light Fitting (30 April 2024, effective life 5 years) | 250 | ||||||||||
Water Rates | 920 | ||||||||||
Other Information | |||||||||||
>Mortgage Repayments were made in respect of: Principal $ | |||||||||||
Principal | $ 3,200 | ||||||||||
Interest | $ 9,600 | ||||||||||
>On 30 April 2019, borrowing costs of $950 were incurred on the mortgage, which has a term of 20 years. | |||||||||||
>Alf wishes to use the Commissioner's estimates of effective life. | |||||||||||
In addition, Alf had maintained a schedule from previous years of depreciable assets that he has acquired for the property: | |||||||||||
Asset | Cost($) | Written Down Value($) | Effective Life(Years) | Depreciation Method | |||||||
Hot water Service | 1,800 | 1,500 | 12 | Prime Cost | |||||||
Carpets | 3,800 | 2,900 | 10 | Diminishing Vale | |||||||
Blinds | 1,300 | 1,050 | 10 | Diminishing Vale | |||||||
Calculate Alf's net rental income from the property that he would include as part of his taxable income for the 2023/24 tax year. |
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