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..
Provide a true tax argument, a. You are engineering a Leveraged-Buy-Out (LB...
a. You are engineering a Leveraged-Buy-Out (LBO) of ACME Industries, an industrial bottle maker. After the LBO, the firm will be financed with 90% debt and 10% equity. Fred Farber,
Explain the characteristics of an efficient tax system, Question 1: (a)...
Question 1: (a) Why does Government intervene in the market's allocation of resources even if the economy is Pareto efficient? (b) What are the principal reasons why marke
What are withholding tax?, Ask question #Minimum 100 words accepte
Ask question #Minimum 100 words accepte
Tax umbrella, The use by a corporation of the losses it continued in earlie...
The use by a corporation of the losses it continued in earlier years to compensate taxes on the profits it attains in future years. Individuals can also utilize a tax umbrella so t
Decide to provide any calculations, This assignment is to be done ALONE. It...
This assignment is to be done ALONE. It is due IN CLASS by the posted due date with no exceptions. Other than the textbook and class notes, the ONLY other resources that should be
Cgt provisions, In relation to the CGT provisions, which of the following s...
In relation to the CGT provisions, which of the following statements are correct? Explain your answer citing the relevant law. (a) When disposal of property (CGT event A1) is by
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
Hayes vs FCT (1956) CLR, hi there i need help in assignment of taxation la...
hi there i need help in assignment of taxation law
Toledo ABC Doctors, need tax help requiring tax forms
need tax help requiring tax forms
IRA, Donald, a 40-year-old married taxpayer, has a salary of $55,000 and in...
Donald, a 40-year-old married taxpayer, has a salary of $55,000 and interest income of $6,000. What is the maximum amount Donald can contribute to a Roth IRA?
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
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.