Question

Q1 Which of the following taxes is not deductible?

Select one:

a. Goods and Services Tax

b. None of the answers are correct

c. Payroll tax

e. Fringe Benefits Tax

Which of the following amounts is fully deductible?

Select one:

b. Regular giving of $50 per week to the local church

d. A gift of $4,000 to a political party

e. A gift of $3,000 cash to a Deductible Gift Recipient

Q3 Which of the following transactions is fully deductible?

Select one:

a. An allowance for doubtful debts of $6,000

d. None of the answers are correct

e. A bad debt of $880 including GST (relates to sales not previously included as assessable income)

these questions is about chapter 9 of prepare tax documentation for individuals and this chapter will be determine amounts deductible under specific provision of the ACT

- specific deductions under section 8-5   

- tax related expenses

- repairs

-lease document expense

- borrowing expense

-mortgage discharge expense

- bad debit

Answer 1

Q1 Which of the following taxes is not deductible?

Answer is: (b) None of the answers are correct

Goods and Services Tax is deductable in many cases for an example GST on motor vehicles are deductible as a general sales tax.

Payroll taxes are deductable for all contributions, which are made by the employer, however the amount withheld from employees, are not deductable

Why not fringe benefits? Because not all, but some form of benefit are deductable. for example helth insurance are deductable to the employee , when employer pays it behulf of employee.

Q2. Which of the following amounts is fully deductible?

Answer is: (e) A gift of $3,000 cash to a Deductible Gift Recipient

A gift to church is only eligible for deduction if the church is registered as a deductable tax recepient. All church are not eligible for tax deduction.

A gift of $4,000 to a political party is not fully deductable, as the maximum limit of such deduction is $1500.

Q3 Which of the following transactions is fully deductible?

Answer is: (d) None of the answers are correct

An allowance for doubtful debts of $6,000 is not deductable because to avail deduction it need to be "Bad" and not "Doubtful".

A bad debt of $880 including GST (relates to sales not previously included as assessable income) is not fully deductable , as the GST amount is not included as assessable income previously.