Divanee is a Neurosurgeon at the local hospital. However, the long hours have been very draining, and she has decided to take a leave of absence from the hospital and pursue her interest in blending coffee beans to find the perfect taste. She has incurred the following expenses: Payment of $5,000 to the Australian Society of Neurosurgeons (Divanee has decided to maintain her membership during her leave of absence in case she decides to go back to work as a surgeon);Donation of $500 to Medecins Sans Frontières (a registered Deductible Gift Recipient);Donation of $1,000 to her local neighbourhood community house (a registered Deductible Gift Recipient). All donors are permitted to book the function room in the house for free up to 3 times per year. The normal booking fee would be $250;She paid $500 for Newspapers which covered some health-related information; andTravel cost $2,500 to attend a global conference in London. Advise Divanee as to her income tax consequences arising out of the above information

Tax deduction is referred to as the benefit that the taxpayer gets on their taxable income by…

Answered: Divanee is a Neurosurgeon at the local…

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter9: Insuring Your Health

Section: Chapter Questions

Problem 5FPE

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Divanee is a Neurosurgeon at the local hospital. However, the long hours have been very draining, and she has decided to take a leave of absence from the hospital and pursue her interest in blending coffee beans to find the perfect taste. She has incurred the following expenses:

Payment of $5,000 to the Australian Society of Neurosurgeons (Divanee has decided to maintain her membership during her leave of absence in case she decides to go back to work as a surgeon);
Donation of $500 to Medecins Sans Frontières (a registered Deductible Gift Recipient);
Donation of $1,000 to her local neighbourhood community house (a registered Deductible Gift Recipient). All donors are permitted to book the function room in the house for free up to 3 times per year. The normal booking fee would be $250;
She paid $500 for Newspapers which covered some health-related information; and
Travel cost $2,500 to attend a global conference in London.

Advise Divanee as to her income tax consequences arising out of the above information

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