Prepare a written opinion addressed to your client

Assignment Help Taxation
Reference no: EM13297870

Prepare a written opinion addressed to your client, Water-Jet Ferries.

WATERJET FERRIES

WaterJet Ferries is a successful ferry operator providing roll-on/roll-off car and truck ferry services to the larger islands off the coast using vessels that are propelled by water-jets powered by diesel engines. Over the last twelve months the company's profitability has been badly affected by rising fuel costs and a fall in patronage. As a consequence management has decided to examine the possibility of modifying the existing engines to reduce their fuel consumption. Not only would the modifications result in reduced fuel costs, the modified engines would produce increased power permitting the vessels to travel at higher speeds and so enable more services to be provided. A further benefit would be that the modified engines would be environmentally friendlier which is important to the island communities served by the company.

Their decision was arrived at after receiving advice from the engine manufacturer that WaterJet would be able to treat the modifications as a repair and by doing so claim a tax deduction for the cost incurred.

WaterJet has requested your company to provide them with an opinion as to the correctness of this claim by the engine manufacturer. Your opinion must be supported by reference to any applicable tax legislation and/or case law.

Verified Expert

Reference no: EM13297870

How should ophelia treat receipt of partnership interest

On July 1 of the current year, the unrestricted partnership interest (fair market value of $50,000) was transferred to Ophelia. How should Ophelia treat the receipt of the p

Explain the process and steps required in an s corporation

What are some of the various retirement plans and the fringe benefits that are involved in each of these plans and explain the process and steps required in an S Corporation

Assume that the assistant to the manager

Assume that the assistant to the manager, using fundamental analysis, develops estimates of expected rate of returns, labeled (Ri), for these stocks. Determine which stock(s)

Explain to edith the tax consequences for herself

Explain to Edith the tax consequences for herself, her husband, and her children, of the gift of the shares to each member of her family - Determine the tax consequences for

Determine amount and the character of the recognized gain

Determine the amount and the character of the recognized gain or loss from the disposition of each asset and how much of the 2014 recognized gains is treated as capital gains?

Advise jack and jill of their income tax consequences

Advise Jack and Jill of their income tax consequences arising out of the above information under both the diminishing value method and the prime cost method (if relevant) fo

Assume that periwinkle would be entitled to input tax credit

During the year, Emma purchased a bathtub manufactured by Periwinkle for $1300. The bathtub only cost Periwinkle $700 to manufacture and is sold to the general public for $2

Discuss whether kit is a resident of australia

Discuss whether kit is a resident of Australia and how his salary and investment income would be taxed - Explanations of the respective outcomes reached by the courts in the f

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd