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Answer: 1). Issues: The issue is related to the ascertainment of the income that is obtained from the media publications under “section 6-5 of the ITAA 1997”? Rule: Referring to the definition provided under “section 6-5 of the ITAA 1997” states that income from personal exertion refers to the income that an individual taxpayer earns from their personal efforts (Jones and Rhoades-Catanach 2015). This includes ...Read More
Answer: 1). Jason should lease the car as has been shown in the “Annexure - Car Lease” attached to the write up. Interest rates or taxes play a factor in decision making as to whether to buy the car outright, lease, or finance the same. When financing the car, one normally spread the full cost of car including all the tax, delivery cost and other cost over the desired number of months and in return of the same pays an amount of inte...Read More
Answer to Question 1 In this case the CGT events are sale of investment property, sales of shares and real estate property as per the section 100-20 of the ITAA 97. The cost base should include the cost of disposal and acquisition of assets as per section 110-25(3) of ITAA 97. Thesection 110-25(4)of the ITAA 97 provides that the renovation cost should be added to the cost base of the property. The section 100-45 of the ITAA 97 provides detail...Read More
Answers: 1. The section 100-20 of the ITAA 97 states that CGT event occurs from the sale of CGT assets are sale of investment property, real estate property and sales of shares. The costs associated with acquisition and disposal are included in cost base as per section 110-25(3) of ITAA 97. The cost of $250000 incurred for renovation the property will be added to the cost base of the property as per the section 110-25(4). ...Read More
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