Customer Service Chat
Get quote & make Payment
general deductions question, Taxation
Simon works as a chiropractor for a small partnership of three other professionals who employ him to work in the office four days each week. Simon earns over $90,000 per year. Each practitioner in the main practice is required to lease a paging unit themselves, so the practice secretary can contact each of them in an emergency situation. The partners of the practice, have co-signed a business loan to meet the costs of starting this practice, including Simon, as they are considering making him a partner. The loan is for $60,000 only and it has been taken out over 5 years at the reasonable interest rate of 8% per annum.
On the fifth day of each week and two evenings each week Simon travels 30 kilometres a private hospital where he takes appointments from staff and patients in a small staff lounge he pays by the hour to use. Simon spent approximately $4,000 on travelling between the practice and the hospital in the last year. The hourly rate is $120. Simon must transport his folding treatment bed and other equipment he uses, between the hospital and the main practice.
There is a uniform Simon is expected to wear whilst at the practice. Simon has this uniform dry-cleaned regularly and last year needed to replace items of uniform. Simon spent $3,500 on his uniform last year.
In June Simon had attempted to clean up the mess one of the partners, the osteopath, had left in the office they shared. Simon fell from the a ladder as he was moving boxes from the top shelf of the bookshelf and suffered injuries which prevents him from working for longer than 6 hours in any day. As he cannot work a full day the partners have terminated Simon''s employment with them.
Simon commences legal proceedings against the partnership for terminating his employment and for injuries he has suffered due to the alleged negligence of her employer as well as seeking to be released from the business loan.
Simon is offered $200,000 for his injuries and also four annual payments of $15,000 each in respect of the termination of his employment.
Advise Simon of the taxation consequences of these transactions for the year, including if Simon were to accept the offer. Would your answer be any different if Simon''s employer offered to pay a lump sum of $195,000 in return for Simon entering an agreement releasing any rights she may have against her employer?
Advise Simon and the practice of the taxation consequences of these transactions for the year with reference to the legislation, rulings and australian case law.
Posted Date: 9/8/2012 2:03:12 PM | Location : United States
Ask an Expert
general deductions question, Assignment Help, Ask Question on general deductions question, Get Answer, Expert's Help, general deductions question Discussions
Write discussion on general deductions question
Your posts are moderated
Write your message here..
Income tax project, Facts Valerie Lawson and Clara Norman are the sole ...
Facts Valerie Lawson and Clara Norman are the sole equal shareholders in the corporation of Lawson And Norman Enterprises, Inc. The corporation, which is a retail office suppl
Tax file, Carol is a successful physician who owns 100% of her incorporated...
Carol is a successful physician who owns 100% of her incorporated medical practice. She and her husband, Jared, are considering the purchase of a commercial office building located
GST, I WOULD LIKE TO KNOW ABOUT GST. FROM WHERE IT HAVE COME AND HOW IT WOR...
I WOULD LIKE TO KNOW ABOUT GST. FROM WHERE IT HAVE COME AND HOW IT WORKS. ALSO INFORM ME WEATHER IT IS APPLICABLE IN INDIA OR NOT.
.calculate the semi annual interest payments, 1. a company issues $10,000, ...
1. a company issues $10,000, 10%, 5 year bonds with semi annual payments principal amount, face value matuity value or par value: $10,000 stated or contract interest rate: 10% (per
Ad valorem tax, It is a tax based on the assessed value of personal propert...
It is a tax based on the assessed value of personal property or real estate. Ad valorem taxes can be property taxes or even duty that is levied on imported items. Property ad valor
Introduction to Tax, To prepare Jackie O. Park''s tax return without the ai...
To prepare Jackie O. Park''s tax return without the aid of Tax preparation software, complete the following steps: Ensure that you have an Adobe Reader http://get.adobe.com/reade
Deferred tax, Loren z Limited is a lorry manufacturer. On 1 January 2011, ...
Loren z Limited is a lorry manufacturer. On 1 January 2011, the company entered into an operating lease (as a lessee) over a company systems. Details of the annual lease rentals,
How much taxable income, Stewie loaned a friend $12,500 to buy some stock 3...
Stewie loaned a friend $12,500 to buy some stock 3 years ago. In the current year the debt became worthless. a. How much is Stewie's deduction for the bad debt for this year? (Assu
Corporation Income Tax Return Project, The following fictitious information...
The following fictitious information is provided for the ACCY 171 Spring 2013 Corporation Income Tax Return Project. Pharq Weston and Jeremy LeClair formed Modern Concepts, Inc., a
Explain expatriation tax, An expatriation tax is a tax on somebody who give...
An expatriation tax is a tax on somebody who gives up their citizenship. In United States, the expatriation tax provisions under Section 877 and Section 877A of the Internal Revenu
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.