Advise leighton for income tax purposes

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Reference no: EM13497516

Leighton recently inherited a large block of land from his uncle. He built a house on the land and subsequently sold the house and the land for $500,000. Leighton received advice on the tax consequences of the sale from his accountant, who is a registered tax agent. The accountant's fees for the year were $700. The fees related to the lodgment of Leighton's income tax return ($300) and the advice regarding the sale ($400). Advise Leighton as to whether the $700 paid to his accountant is deductible for income tax purposes.

Reference no: EM13497516

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