LAW300 Taxation Law
Assignment
Facts:
During the current tax year Erin received the following amounts:
• Salary and wages income of $98,000. • Reimbursement of her medical expenses of $20,000 by her employer as part of her salary package.
• $4,200 interest from a bank term deposit of $50,000.
• $500 per week for 50 weeks of the year from a rental property she owns.
• Winnings of $10,000 on the poker machines.
• $500 from selling eggs that her chickens laid to friends.
• A holiday bonus of $1,000 from her employer.
• A watch worth $200 from a happy client.
• Payment of her Tennis club fees of $2,000 that she paid herself.
• Purchase of legal books to help her to perform her job more effectively as a lawyer totalling $3,000.
Task
You have been asked by your managing partner to prepare a letter of advice to Erin advising her of the taxation treatment of the above amounts.
