In: Accounting
Bert spends $10.60 a day travelling to work, and a further $65 a
day sending his daughter Belle to a childcare
centre. Bert has just received the monthly account for the
childcare centre totalling $1,625, which he needs to
pay immediately.
Bert owns a newspaper publishing company. He has paid a
membership fee with respect to his personal
membership of the World Association of Newspapers, amounting to
$3,300, and he has bought a new
computer for $2,200 that he keeps in his study at home.
Bert has recently purchased a beach house near Geelong. The
property has been rented out to Bert’s sister
since he purchased it. He took out a 25-year loan to finance the
purchase. His interest payments are $7,200 a
year. Bert also claims lawn-mowing expenses of $100 per month with
respect to his beach house.
Required: Advise Bert about the deductibility of the above
expenses. Where appropriate, refer to case law and
legislation in your answer
20 marks