Suzy, 58 years old, is a financial adviser who runs her own business from her home for the past three years. She has set aside a room in her home to use as an office. Her home office is a place of business and she has clients visiting her regularly in addition to Suzy travelling to visit her clients. Suzy paid a number of expenses for the current tax year ended 30 June, including the following:

• $1200 paid to her mechanic for servicing her Holden Commodore car that she uses 70% of the time in her business. Suzy uses the log book method in calculating her motor vehicle expenses.

• $1500 paid for the repainting of her home office as the old paintwork had become faded and scratched.

• $120 in a speeding fine for travelling at 75 kilometres per hour in a 60 kilometre zone in her car.

Based on the above items and assuming that Suzy is not using the STS method of accounting in her business what amount can she claim as deductions for the current tax year ended 30 June?

Select one:

1.

$2340.

2.

$1 500.

3.

$340.

4.

$2 000.

5.

$2 820.