Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Taxation Law For The Sales Of The Aircraft

tag 0 Download2 Pages 408 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Questions:

1. Advise Enviro-Spray Ltd of the deductibility of the $45,000 spent on the spray equipment.

2. Having installed the newly developed electronic system, could Enviro-Spray Ltd claim the cost of the amount they would have spent on the old out-dated equipment

3. What are the tax consequence for Dusters Ltd arising from the sale of the aircraft to Enviro-Spray Ltd?

 

Answers:

Answer 1:

“Section 25-10 of the ITAA 1997” allows an individual to claim deductions for expenditure incurred in repairs to depreciating asset that is held or used for generating the taxable income. As held in “FC of T v Western Suburbs Cinemas Ltd (1952)” replacing a portion of structure i.e., old colotex with fibro represents a capital item and more than meets the needs for restoration. The ceiling provided considerable advantage over older one and it cannot be termed as repair.

The taxpayer in Enviro-Spray Ltd incurred $45,000 on the spray of new equipment. The cost incurred by Enviro-Spray Ltd was much more than meeting the needs of restoration, which provided considerable advantage over the old one. The replacement of worn out equipment with new spraying equipment represents capital in nature. Therefore, it is non-deductible.

Answer 2:

In compliance with the provision of tax legislation, tax payers are only allowed to claim deductions under section 25-10 of the ITAA 1997 for expenses incurred on notional repairs. As held in the case of “Western Suburbs Cinemas Ltd v FCT (1952)” the court of law defined “Notional repairs” as the cost which could have been occurred by the taxpayer given the taxpayer has repaired property instead of improving or replacing it entirely.

In the current case of Enviro-Spray Ltd if the taxpayer had replaced the worn out spraying equipment with the old outdate equipment then the taxpayer would not be allowed to claim deductions as the expenses represents notional repairs. This is because the expenses on spraying equipment would result on saving on future expenses for repairs which would be deductible.

 

Answer 3:

Determination of Capital Gains Tax consequences for Duster Ltd on sale of Aircraft to Enviro-Spray Ltd

Computation of Capital Gains tax

In the books of Dusters Ltd

Particulars

Amount ($)

Purchase Price of Aircraft (A)

 $ 10,00,000

Less: Depreciation Claimed (B)

 $   4,00,000

Aircraft at Cost (A-B) = C

 $   6,00,000

Selling Price of aircraft (D)

 $   7,50,000

capital gain (D-C) = E

 $   1,50,000

Taxable capital gains (50% CGT Discount)

 $      75,000

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Taxation Law For The Sales Of The Aircraft. Retrieved from https://myassignmenthelp.com/free-samples/taxation-law-for-the-sales-of-the-aircraft.

"Taxation Law For The Sales Of The Aircraft." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/taxation-law-for-the-sales-of-the-aircraft.

My Assignment Help (2019) Taxation Law For The Sales Of The Aircraft [Online]. Available from: https://myassignmenthelp.com/free-samples/taxation-law-for-the-sales-of-the-aircraft
[Accessed 05 December 2019].

My Assignment Help. 'Taxation Law For The Sales Of The Aircraft' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/taxation-law-for-the-sales-of-the-aircraft> accessed 05 December 2019.

My Assignment Help. Taxation Law For The Sales Of The Aircraft [Internet]. My Assignment Help. 2019 [cited 05 December 2019]. Available from: https://myassignmenthelp.com/free-samples/taxation-law-for-the-sales-of-the-aircraft.


Presenting a well-crafted dissertation is anything but simple. However, the experts at MyAssignmenthelp.com can simplify the elaborate process for you. They will guide you on diverse dissertation topics, no matter how complex they are. Right from the dissertation proposal to the dissertation conclusion, our writers will take care of every step when you delegate your papers to them. In order to ensure the quality of your papers, they will prepare a clear dissertation structure. They will also present the dissertation methodology accurately. So, if you ever feel confused about how to write a dissertation, you can rely on MyAssignmenthelp.com.

Latest Tax Samples

HA3042-Imposition And Collection Of Income Tax

Download : 0 | Pages : 13

Answer: Introduction:  One of main sources of revenue for a country is the taxes that it collects from its citizens including individual, corporate and other entities. In order to regulate the taxation matters in the country each and every country has respective legislations. In Australia, earlier it was Income Tax Assessment Act, 1936 that used to govern the provisions related to imposition and collection of income tax by the country on t...

Read More arrow

HA3042 Taxation Law 3

Download : 0 | Pages : 13

Answer: Answer 1 The annual payment is not considered as income in Australia since lottery winnings are not taxable and are considered as prizes. Given that the ‘Set for Life' is a lottery, the winnings though distributed over a long period of time, are not susceptible to taxation. This means that the annual prize is not declared on a tax return. Initially, taxation is done at the point of obtaining the scratches where the scratches are...

Read More arrow

LAW505 Taxation 3

Download : 0 | Pages : 12
  • Course Code: LAW505
  • University: Charles Sturt University
  • Country: Australia

Answer: Issue 1 As per the case facts outlined, Amber has enacted certain transactions involving sale of certain assets and other contractual agreements. In this background, it is essential to outline the various tax liabilities that would potentially arise for Amber. The various issues in this regards are indicated below. 1) Owing to liquidation to chocolate shop, proceeds would be obtained and it needs to be outlined if capital gains tax w...

Read More arrow

ACC3TAX-Tax Implications Related To The Sale Of Brent Wilson House

Download : 0 | Pages : 6

Anwer: Answer to question 1:  As stated in the “section 108-5 of the ITAA 1997” capital assets is usually referred as the form of property or any kind of the legal equitable rights which is not treated as the property. As stated under the “section 108-5 of the ITAA 1997” the land and building are not considered for the capital gains tax purpose (Barkoczy 2014). As stated in “section 104-10 (1) of the ITAA 19...

Read More arrow

HA3042 Taxation Law

Download : 0 | Pages : 18

Answers: 1 Prizes and awards are referred by Australian Tax Office as other income mainly because they are not earned on regular basis as is seen in normal business operations. The tax office is likewise seen to explain the classification of awards and prizes for tax purpose on these gaming and winnings events as either tax exempt or taxable (Marshall and Armstrong, 2010. Pg.220.) Australian Tax System and for this case Australian Tax O...

Read More arrow
Next
watch

Save Time & improve Grades

Just share your requirements and get customized solutions on time.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,156,437

Orders

4.9/5

Overall Rating

5,050

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1592 Order Completed

96% Response Time

Jane Sima

Ph.D in Psychology with Specialization in Industrial-Organizational Psychology

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

134 Order Completed

95% Response Time

Thomas Nelson

MS in Information Systems Technology with Specialization in Database Administration

New Jersey, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2632 Order Completed

100% Response Time

Albert Ambrosio

MSc in Nursing

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

184 Order Completed

96% Response Time

Arapera Billing

Masters in Management, MMgt

Wellington, New Zealand

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

I have here this site by one of my friends. It was a nice service for the students. Quicky response. Excellent

flag

User Id: 352144 - 05 Dec 2019

Australia

student rating student rating student rating student rating student rating

I received a perfect score!! The assignment was to identify the best action and the writer nailed all the parts perfectly.

flag

User Id: 348928 - 05 Dec 2019

Australia

student rating student rating student rating student rating student rating

I have made many assignment but i didnt get above 67 marks out of hundred as i pay high amount of money

flag

User Id: 337029 - 05 Dec 2019

Australia

student rating student rating student rating student rating student rating

This was fast and affordable. It would\'ve taken me much longer to start writing my essay. Instead, I\'ve got amazing help and also a great grade!

flag

User Id: 324077 - 05 Dec 2019

Australia

student rating student rating student rating student rating student rating
Have any Query?