Microsoft Word - ACC00717-2016-3 Major Assignment.docx
Your client Jacob comes to see you in December 2016 asking to prepare his income tax return for the year ended 30 June 2016. He is also seeking your taxation advice in relation to some other issues. He provides the following information;
Jacob wants to sell his current home and purchase a new home to live in. He purchased the house on 31 October 1987 for a cost of $190,000 and also incurred legal costs of $1,900 and stamp duty of $4,850 in relation to the purchase. Jacob has lived in the house as his main residence since then, except for a period from 31 December 2006 to 31 December 2014. The market value of the house at 31 December 2006 was $290,000.
In order to sell this house, Jacob needs to undertake some repair work as follows;
Repainting the whole house
Building a fence to make the front of the house more presentable Repairing the front porch that has begun to fall down
$6,200 $3,600 $2,400
He has found a perfect house to buy, so may have to buy it before he sells his first house, meaning there may be a period of time where he owns two houses. He could sell his first house for $480,000.
During the year Jacob saved a boy from a shark attack while he was patrolling his local beach in his capacity as a volunteer lifesaver. The boy?s parents gave Jacob an Apple watch worth $650. He was also given a medal for bravery for saving this boy.
In addition to the above transactions, Jacob had the following income and expenses for the year ended 30 June 2016;
Salary (occupation ? teacher)
Franked dividends from Telstra shares
Holiday received for opening a new savings account with his bank Family Tax Benefit for his 10yr old son (Jacob is a sole parent)
Purchase of work clothing and shoes
Use of private car for school activities ? See additional information below Costs of studying a masters of teaching in order to obtain a promotion
This total includes $1,850 for a laptop purchased 1/2/16 Superannuation contributions for himself
Tax Agent fees
PAYG withholding from his salary
72,000 2,850 3,200 1,300
Jacob used his CX-9 (purchased in June 2013 for $42,000) for school activities. During the year he travelled 25,000 km, of which 5,600 were for school purposes. Running expenses include;
Registration and insurance $1,700 Fuel $2,080 Speeding fine $450 Repairs and services $750
Prepare a Letter of Advice to Jacob that outlines/discusses/explains the following:
- Thetaximplicationsofthesaleofhisfirsthouseandpurchaseofnewhouse,includingany exemptions available and noting any additional information you may require from Jacob. Calculate the assessable gain, if any. (10 marks)
- Theassessabilityanddeductibilityofalltheotheritemslistedintheinformationasyou calculate Jacob?s taxable income for the year ended 30 June 2016. (10 marks)
- Thetaxpayable/(refundable)forJacobfortheyearended30June2016,includingall additional levies and tax offsets. (7 marks)
This question was answered on: Sep 18, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy from our tutoring website www.aceyourhomework.com (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Sep 18, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.