Required:

Advise Jane regarding any relevant tax implications arising from the below facts in relation to the 2019/20 income year. In your answer, make sure that you apply the HIRAC methodology and refer to any relevant cases, legislative provisions, tax rulings and principles of tax law, and include any relevant calculations.

- Jane lives in Ryde and commutes daily to the accounting firm in Sydney CBD where she is employed full-time as an accountant. She receives a salary of $110,000 in the 2019/20 year of income, from her accounting job.

- Janes employer also provides her with a laptop computer (valued at $3000) to use for her work. Jane is an Australian resident for tax purposes.

- For the 2019/20 year of income, Jane pays $700 membership fees for her membership of the Association of Chartered Accountants, Australia & New Zealand.

- She also pays $500 for an annual subscription to the Australian Accounting Review (AAR) magazine in 2019/20.

- Jane is required, by her employer, to wear all black clothing while working as she often meets with clients. During the 2019/20 year of income, she spends $700 on all black skirts, trousers, and tops to wear to client meetings.

- In October 2019 she takes a client out for lunch at a restaurant in the Four Seasons hotel to discuss a work matter. The lunch costs $350.

- She is so busy working at the accounting firm that she often has to bring work home on weekends. She completes this work using her work laptop at a small table in the kitchen while her housemates are cooking and washing dishes. During the 2019/20 year of income, the heating and lighting costs for the kitchen are $500.

- Jane is very hardworking and in addition to her full-time job, she also teaches art classes at a community college in Epping during the week, in the evenings. She travels from the accounting firm in Sydney CBD, to the college in Epping to teach. During the 2019/20 year of income, she incurs travel expenses of $2,000 in travelling from the accounting firm to the college in Epping. She receives $20,000 from teaching at the college during the 2019/20 income year.

- In December 2019, Jane sees an advertisement in an Art Teachers magazine about an art competition for art teachers. Jane decides to enter as she has previously won several prizes in art competitions. Over the next few weeks Jane paints a beautiful landscape of the south coast and submits her painting in the competition. She wins a cash prize of $30,000 and an annual pass to exhibitions at the Art Gallery of NSW.

- While exploring some local sales in January 2020, Jane came across a bargain and purchased a 120-year old, antique, hand-painted, porcelain tea set for $1,130 (comprising a teapot (value $450), 4 cups with saucers (value $120 per cup with saucer), and a milk jug (value $200)). A few weeks later she received an offer of $1,800 for the set. She negotiated with the purchaser and sold each item separately ($700 for the teapot, $200 per cup with saucer, and $300 for the milk jug).

- Several years ago, Jane purchased a house near the beach which she only makes available for use by her relatives. Janes uncle suggested that she should place an advertisement for tenants in the newspaper occasionally and claim tax deductions for the property expenses. The purchase price was $800,000 and Jane was required to pay $40,000 stamp duty on the transfer. She borrowed money from a bank to fund the purchase price and paid $100,000 in interest on the loan. In February 2020, she also paid $40,000 to a builder to renovate the bathrooms. In addition she paid $20,000 in legal fees to block a proposed development nearby which would have obstructed the houses picturesque beach views. On 7 June 2020 Jane entered into a contract of sale of the property to a third party at market value of $1,200,000. Settlement occurs in August 2020.