Your client, AXX runs small clothes shop in the suburb of BXX. He operates as a sole trader. The business is known as 'AXX's fashions' and AXX has an ABN and is also registered for GST. The following figures are exclusive of GST.
298,000 Sales of clothes
17,000 Rental income from an income producing investment apartment
1,000 Interest on Bank deposits.
8,000 Fully franked dividend from a large Australian public company
2,000 Exempt income from part-time military service
2,000 Private Health fund refunds
6,000 Fifty-percent franked dividend received from a large Australian public company
15,000 Body Corporate fees on income producing property
25,000 Part-time employee salary
2,000 Superannuation contribution for employee
5,000 Interest on money borrowed to purchase the income producing investment apartment
3,000 Insurance and land tax for the investment property
1,100 Fees paid to a registered Tax Agent
30,000 New item of plant with an estimated life of 10 years
1,000 Travel to and from work
2,000 Rates on his principal residence
5,000 Doctors fees for AXX
3,000 Doctors fees for AXX's wife
6,000 Superannuation contribution for AXX
(a) AXX is using the Small Business Entity (SBE) concessions
(b) Stock at beginning of the year was valued at $35,000
Stock at end was: Cost $16,000
Market selling value $19,000
(c) On 1 July 2018 the opening depreciation pool balance for the SBE pool was $40,000. During the year AXX purchased 1 new depreciating assets used 100% for business purposes. This is recorded in the payment's information listed above. The investment apartment was purchased new on 1 July 2018 and is part of a hotel complex. The real estate agent advised Bill Jones that the construction cost of the apartment was $287,000 and this was confirmed by the builder.
(d) AXX has a carry forward tax loss from an earlier income year of $10,000.
(e) AXX and his family are members of a private health fund and do have private hospital insurance.
Calculate AXX's personal tax liability for the year ended 30 June 2019. You should explain your treatment of each item in this question. Figures can be rounded to the nearest dollar.
Recently Asked Questions
- Eureka Limited is a family owned company with around 73 employees and sales revenue increased to more than $ 18.5 million during the past year. It has been in
- Which of the following terms are typical in a maintenance cycle?(select 3) a. moves and relocations b.run to failure(no scheduled maintenance) c.Preventive
- Which is the correct answer: According to the universal gas law a) temperature changes do not affect density or pressure. b) pressure is proportional to