Taxation Term Paper Example | Topics and Well Written Essays - 1750 words

Taxation - Term Paper Example repair, maintenance and insurance costs. There are four alternative method are available to taxpayer to calculate the deduction for car expenses, which are provided in Appendix no.1. Chossing the cents for kilometer method, the amount is $7560 plus another car expenses $6500, arrives to a total amount of $14 060. Section 25-10(1) of the ITAA97 refers to a deduction for expenditure on depreciating assets. And S 40-30(1) sustains that a depreciating asset has a limited effective life and can reasonably be expected to decreases in value over the time it is used. Section 25-10(1) of the ITAA97 refers to a deduction for expenditure on depreciating assets. And S 40-30(1) sustains that a depreciating asset has a limited effective life and can reasonably be expected to decreases in value over the time it is used. Section 25-10(1) refers to a deduction for expenditure on depreciating assets. And S 40-30(1) sustains that a depreciating asset has a limited effective life and can reasonably be expected to decreases in value over the time it is used. As shown by the deductions analysis and by the computations, the taxable income equals the assessable income less allowance deductions, and is $245671.5. Considering that the tax rate is 30%, the amount of tax is $73701.5. There are no tax offsets so that total tax liability is equal to the amount of $73701.5. On 1 July 2012, it was constituted a partnership between Mary Bran (former sole proprietor) and Joe Mason. The business was previously started on 1 September 2011 by Mary Bran, and consisted of an architect’s practice, which main area of service is to provide services to home builders and small business. The business was located in Northcote and still is, and the startup costs were in amount of $ 600.000 (partly financed with debt). In what concerns the contribution of the new partner – Joe Mason, this was in amount of $ 600.000. The contribution of the new partner Joe Mason