ACC00132 Taxation

Published : 27-Sep,2021 | Views : 10

Question:

Explain the tax implications of the sale of the Telstra shares. Calculate the assessable gain, if any, preparing all appropriate work papers. Explain the assessability and deductibility of all the other items listed in the information and then calculate Stefan’s taxable income for the year ended 30 June 2017, preparing all relevant work papers.

Calculate the tax payable/ (refundable) for Stefan for the year ended 30 June 2017,including all additional levies and tax offsets that could potentially apply to him.Prepare relevant work papers. Using the HandiTax software (which you will download from the link on Blackboard),prepare the income tax return for Stefan for the year ended 30 June 2017.

Answer:

Computation of Taxable Income of Stefan
For the year ended 2017
Particulars	Amount ($)
Gross Salary	51188.2
Fully Franked (Net)	264.74
Franking Credits	113.46
Proceeds	12740
Cost Base	9120
Gross Capital Gain (Proceeds less Cost Base)	3620
50% CGT Discount	1810
Total Assessable Income	51188.2
Self-Eductaion Expenses	2775
Deducions on Work and Shoes	280
Purchase of Utensils	650
Income Protectcion Insurance	320
Payment of interest	7400
Tax Agent Fees	180
Travelling cost	2610
Superannuation Contribution	1500
Total Allowable Deductions	15715
Total Taxable Income	35473.2
Tax on Taxable Income	3281.87
Medicare Levy	709.464
Less: Tax offset	445
Less: Franking credit	113.46
Total Tax Payable	3432.874