You are currently working as a graduate accountant and are provided with the following information from a client. The client, Kim, has the following income and expenses for the financial year ended $30$ June $2023.$ Kim is employed as a Senior lawyer for a large legal firm. Kim also operates an art store at the local market where she sales her paintings.

Income

$250\mathrm{.}00$ Kim is required by her employer to participates in a monthly raffle operated by her employer where each month at afterwork drinks a staff member wins the door prize. Kim contributes $$5$ a week from her after tax salary towards the monthly raffle. Kim wins the door prize for June $2023.$

$1,000\mathrm{.}00$ Bonus received from her employer for recruiting a new staff member. Employer offers to all staff a bonus of $$1,000$ if they introduce a new employee and that employee successfully completes the probation period.

$260,000\mathrm{.}00$ Salary received from her employer $($including PAYG Withholding of $$50,000)$

Kim has a $$100,000$ invested in a $5$ year savings bond $($acquired $1$ July $2022)$ which earns $3\%$ interest each year but is paid as a lump sum at the end of the term of the bond $(5$ years$).$

$100,000\mathrm{.}00$ Kim wins $$100,000$ on keno while attending an employer function held at the Casino.

$65,000\mathrm{.}00$ Income from Kim$$s Art store. Kim sales on average $2$ paintings a week and attends the market every Saturday. Kim is not registered for GST but does have an ABN.

$2,500\mathrm{.}00$ Received an award from the Law Society for her contribution to the profession. To receive the award Kim was nominated by his peers and had to attend the year end function.

$650,000$ During the $30$ June $2023$ financial year Kim sold a vacant block of land, the contract was dated $25$th June $2023$ and the property settled on the $28$th July $2023.$

Kim originally brought the block of land in July $2022$ for $$650,000,$ in December $2022$ she subdivided the block of land into two lots. At the time of subdivision each lot had a market value of $$350,000.$

Kim only sold one of the blocks for $$650,000$ on the $25$th June $2023$ and she still owns the other blocks.

$20,000$ Kim sold rare piece of artwork for $$20,000$ during the $30$ June $2023$ financial year. Kim had purchased the sculpture for $$200$ ten years earlier.

$120,000\mathrm{.}00$ Kim sold a yacht on the $15$th May $2023.$ Kim purchased the yacht in May $2019$ for

$$80,000.$ Kim used the yacht to holiday in cairns.

$800\mathrm{.}00$ Kim purchased safety work boots for $$250$ and protective glasses for $$250$ as she sometimes attends client$$s premises on construction sites. In addition to this Kim purchased a new dress for $$300($which he wore to the law society dinner$)$

$1,500\mathrm{.}00$ Kim had to travel for a conference and incurred costs for hotel stay, meals and fuel. Kim$$s employer reimbursed him for these costs.

$15,000\mathrm{.}00$ Kim has been thinking about becoming a real estate agent. Kim$$s employer advises Kim that if she completes the relevant courses his employer will give her an opportunity to work in the commercial property section of the legal firm. Kim also advised you that she will use the licence to start her own real estate firm.

Kim advises that she sometimes works from home, in the garage. She incurs the following cost, Insurance $$2,500,$ Electricity $$1,250,$ Interest on loan for property

$$10,500$ and water $$550.$

$730\mathrm{.}00$ Membership fees, $$530$ relating to membership of Law Society and $$200$ relating to membership fee for Real Estate Agents.

$6,000\mathrm{.}00$ Legal fees, Kim has been reported to the law society for breach of trust account. Kim has been accused of using client$$s money to gamble at the Casino. Kim advised this is a misunderstanding and her employer is supporting her in the actions. Kim has sort legal advice on how he should respond. If complaint is successful Kim$$s legal practicing certificate will be cancelled.

$1,500\mathrm{.}00$ Telephone expenses, Kim estimates $40\%$ of the cost relates to work and his employer does not reimburse this cost.

$25,000\mathrm{.}00$ Purchases of art materials used in creating her artwork sold at the markets.

$12,500\mathrm{.}00$ Kim travels to Germany to attend a $1-$week course on Legal Ethics. While in Germany Kim also attends conference on selling real estate. Kim than spends $3$ weeks on holiday. The legal ethics course was paid be employer, however the real estate course cost $$2,000,$ the airline ticket was paid by Kim $($$$2,500)$ and Kim spent $$3,000$ on accommodation for entire $4$ weeks.

Kim has no children and does not have private health insurance.

Required:

$$ Determine which Income and Expenses are assessable income or allowable deductions. Note you will need to cite legislative references, case law and tax rulings as applicable. Emphasis is on providing substantiation for your reasoning to include as assessable income or allowable deduction.