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..
#title, Jack and Jill (two unrelated individuals who are citizens of the US...
Jack and Jill (two unrelated individuals who are citizens of the US) found an interesting script for a movie in 2010, and they decided to produce it in Nevada. It was a "low budge
Income tax liability, The following information is available for Kessler Co...
The following information is available for Kessler Company after its first year of operations: Income before taxes $250,000 Federal income tax payable $104,000 Deferred income tax
Research, Hi can you help me with my tax research and answer the following ...
Hi can you help me with my tax research and answer the following After reading the Treasury Department Circular 230 and AICPA statement of standard for tax services, answer the fo
Gregory R. and Lulu B. Clifden tax return, Gregory R. and Lulu B. Clifden l...
Gregory R. and Lulu B. Clifden live with their family at the Rock Glen House Bed &Breakfast, which Gregory operates. The Bed & Breakfast (B&B) is located at 33333 Fume Blanc Way, T
Franking accounts, how to prepare a frankin account
how to prepare a frankin account
Maximum loan amount, 1. (a) Give an example of a function, f(x), that has a...
1. (a) Give an example of a function, f(x), that has an in ection point at (1; 4). (b) Give an example of a function, g(x), that has a local maximum at ( 3; 3) and a local minim
Marginal tax bracket, Maskot Industries wishes to determine whether it woul...
Maskot Industries wishes to determine whether it would be advisable to replace an existing, fully depreciated machine with a new piece of equipment. The new machine will cost $300,
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
How does the united states tax, Erica is a citizen of a foreign country, an...
Erica is a citizen of a foreign country, and is employed by a foreign-based computer manufacturer. Erica's job is to provide technical assistance to customers who purchase the comp
Sec 351 of income tax act, Bob and Carl transfer property to Stone Corporat...
Bob and Carl transfer property to Stone Corporation for 90% and 10% of Stone Stock, respectively. Pursuant to a biding agreement concluded before the transfer, Bob sells half of hi
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.