Posted: May 11th, 2022

Henry, a tax resident of Australia, was a famous jazz singer who passed away recently.

Job
Query 1
Henry, a tax resident of Australia, was a well-known jazz singer who handed away not too long ago. Jack, a writer was on Henry’s life story and needed to jot down a bibliography on Henry’s life. Jack approached Henry’s spouse, Jenny (additionally a tax resident of Australia) to interview her on Henry’s life story. She was provided $1 million for Henry story. Jenny was paid $500,000 deposit earlier than the interview. After the interview she was paid the steadiness of the cash.

Would the tax penalties have modified if Jenny had written the e-book herself?

Required
Advise Jenny on her tax penalties.

You will need to cite the related case legislation and laws

(10 marks)

Query 2
Sally is a single guardian who’s employed as an accountant. So as to attend employment she should put her younger little one in a day-care centre. Sally considers the expense is essentially incurred in gaining her revenue. Would she be entitled to a tax deduction beneath s8-1?
Required
Advise Sally of her tax penalties
(10 marks)
Query three
Joseph conducts an plumbing enterprise. With a view to future retirement he purchases 20ha of land and vegetation native wildflowers that he plans to reap and promote. As a preliminary measure he arranges to clear the land and plough in compost. It’s anticipated that the primary industrial crop is not going to be harvested for 5 years. He incurs curiosity on a mortgage to finance the land buy, land preparation prices, fertilizer prices and prices of buying native seedlings.
Advise Joseph of the tax penalties of the enterprise.
You will need to cite the related case legislation and laws
(15 marks)