Apportionment and Dissection of Expenses
What provision of the ITAA gives the Commissioner power to apportion an expense between income earning and non-income earning activities so that only part of it is deductible?
What is the difference between apportionment and dissection of a loss or outgoing?
If an expense cannot easily be apportioned between its deductible and non-deductible components how is it treated for income tax purposes? Provide authority?
What principles govern the Commissionerâ€™s apportionment power?
When is an expense considered to have been â€˜incurredâ€™?
What is the meaning of â€˜necessarilyâ€™ in the context of â€˜necessarily incurredâ€™ in s 8-1(1)(b)? Provide authority.
Briefly explain the following â€˜testsâ€™ – used to determine whether an expense is on revenue or capital account:
(a) the â€˜once and for allâ€™ test;
(b) the â€˜enduring benefitâ€™ test;
(c) the â€˜fixed vs circulating capitalâ€™ test;
(d) the â€˜business entityâ€™ test.
What will expenditure be â€˜of a private or domestic natureâ€™?
What is the difference between a repair and:
(a) a replacement;
(b) an improvement;
(c) an addition?
What test is used to determine whether something is an â€˜improvementâ€™?
What is an â€˜initial repairâ€™?
What is a â€˜pre-emptiveâ€™ repair?
In what circumstances will a â€˜pre-emptive repairâ€™ be an allowable deduction?
What is a â€˜notionalâ€™ repair?
In what circumstances with a notional repair be allowed as a deduction?
How might capital expenditure on income producing premises be deducted if the work cannot be categorised as a repair?
Bad Debts and Carry-forward Losses
What conditions must be satisfied before a taxpayer is permitted to deduct the amount of a bad debt?
Under what provisions are carry forward losses deductible?
What income do you offset your carry forward losses against – and in what order do you offset them against that income?
How long can you carry a loss forward and offset it against income you earn in later years?
In what cases are gifts deductible?
What is the minimum amount of a gift that is deductible?
X makes a large donation to her sonâ€™s schoolâ€™s building fund in lieu of paying school fees? Are donations to school building funds deductible? Is this donation deductible?
Y gifts $1 million to the Townsville Families Society, a non-profit organisation set up to provide counselling to families in distress, upon condition that it lends him back $900,000 for 99 years at nil interest. Are donations to such societies normally deductible? Is this donation deductible? Why/why not?