Emily Baff is a 43 year-old marketing director employed by Rockwood Pty Ltd in Melbourne. Emily engages your services for the preparation of her 2017/18 tax return. On 04 August 2018 Emily sends you the email below. From: Emily Baff Sent: 4 August 2018, 9:00:43 AM To: Tax Accountant Subject: Tax return 2017/18 - Emily Baff Attachments: Emily Baff - Payment Summary 2017/18 Dear Tax Accounting Team, As discussed, please find attached my 2017/18 payment summary. Also, below is additional information which may be of assistance in the preparation of my tax return. My health insurance policy number is 123456-78 and I have top hospital cover. Since I was promoted to my current Marketing Director position, Rockwood provided me with a Toyota Corolla at no cost (although I know the car cost them $25,000) except for fuel, which costs me $80 per month. I've been driving this car since 1 October 2017, to and from work and on the weekends, but not to visit clients (I prefer to take an Uber to visit clients so I can work during the trips). On 1 January 2017 I took a loan with Rockwood of $600,000 at an interest of 4% per annum. I used $400,000 to buy an investment property in Inverloch/VIC, and the rest I used to pay off my home mortgage. I signed the contract to purchase the Inverloch house on 10 August 2017 and it has been rented at $1,500 per month since 1 September 2017. On 1 October 2017 the tenants advised of a leak on the roof, so I had it fixed at a cost of $22,000. It was that expensive because 1/3 of the roof had to be replaced, and I paid this amount in full on 04 October 2017 when the service was completed. I also had a new air-conditioner installed at the master bedroom of the Inverloch property on 10 December 2017 at a cost of $4,000 (I have all the receipts for these expenses). As the tenants told me this air-conditioner was excellent, I actually bought a second one and had it installed in my own house in Richmond on 25 January 2018. On 15 May 2018 I sold 3,000 BHP shares for $10,000. I had bought those shares in 2014 for $6,000. Earlier this year (in February) I made a loss of $3,000 on the sale of all my ACACIA shares that I had purchased in December 2017. Luckily, in June this year the share marked recovered and I was able to sell my Orica shares (which I had bought in November last year for $4,000) at a capital gain of $5,000 on 30 June 2018. Last year I had a capital loss of $4,000. I am not sure what to do with it, could you please advise? Two years ago I bought an antique tea set with 4 teacups for $499. In March this year I sold each cup separately for $200. There is one more issue I need to discuss with you. In March this year I spent $25,000 in legal fees while suing my previous employer who, during my employment time, consistently paid me 25% less than a male colleague who held an equivalent position and performed exactly the same functions as me. We ended up settling the dispute out of Court and I agreed to receive a payment of $350,000 in arrears and moral damages, which were paid in a lump sum on 15 June this year. This is a significant amount and I don't want to have trouble with the ATO. Could you please provide me with a separate letter of advice explaining the income tax consequences relat
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