Point No.1-
Debbie running business from home, As per Law :
Description | Amount |
Rate,Home Loan Interest,Council rates & Home Insurance | $5,000 |
Heating, Air conditioning, Electricity, Phone and Internet | $5,000 |
Total | $10,000 |
Area Used for Business Purpose is 20% of Total Floor Area, Allowable deduction is 20 % only | $2,000 |
Point No.2
Description | Amount |
Grease Remover, Steel cap boots & Sandwiches for Lunch | $500 |
Total | $500 |
In above Case, Grease Remover & Steel Cap boots must be buy for business Purpose, because for Private purpose this thing is not usable, so as per law Grease Remover & Steel Cap boots expenses fully allowed for deduction, and in case Sandwiches, As per law taxpayer can get 50% deductions on Meals & Entertainment, in this case bifuracation of expenses not provided, so we can assume equal amount spend on each expenses i.e. 166.67 $, so she can get Total deduction of $ 416.67 (166.67+166.67+83.33) | $417 |
Point No.3
Description | Amount |
Legal Fess | $5,000 |
Total | $5,000 |
As per Law,Legal fees are tax-deductible if the fees are incurred for business matters. In Debbie's Case Fees paid for defend her business in Court. So she can get 100% Deduction in this Case. | $5,000 |
So she can get Total Deduction of $ 7417.
Debbie's DeLoreans is a business taxpayer in Victoria that specialises in the sale of antique DeLorean...
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The Business Situation When Shelley Jones became president-elect of the Circular Club of Auburn, Kansas, she was asked to suggest a new fundraising activity for the club. After a consider- able amount of research, Shelley proposed that the Circular Club sponsor a pro- fessional rodeo. In her presentation to...