On 15 July 2017 Jacko Brown who normally resides in Brisbane was transferred to the New York office of his company Direct Australia Ltd, for a period of 5 years. His wife Delilah Brown accompanied him to Los Angeles. In New York they lived in a house owned by the company and rented out their Brisbane residence. While living in New York Delilah borrowed $100,000 from NAB Australia in December 2017 to invest in shares of Direct Australia Ltd. During the year ended 30 June 2018 Delilah received $11,000 as her share of the rental income from the property in Brisbane and $2,700 in fully franked dividends from Direct Australia Ltd. Her interest expense for the loan from NAB amounted to $5,600.
What is Delilah’s taxable income and tax liability in Australia for the tax year ending June 2018?
Computation of Income of Delilah Brown
Rental Income $11,000
Add : Dividend $ 2,700
Total $13700
Less : Interest Expense ($5,600)
Total income $8,100
On 15 July 2017 Jacko Brown who normally resides in Brisbane was transferred to the New York office of his company Direc...
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