John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year. John incurred legal expenses as he was sued for falseadvertising. John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him$22,000. Johnordered1000newT-shirtswithprintedCityConv’slogosformarketingpurposes.Thesecosts him$1,500. John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use thefootpath. Required: With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events.
John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year. John incurred legal expenses as he was sued for falseadvertising. John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him$22,000. Johnordered1000newT-shirtswithprintedCityConv’slogosformarketingpurposes.Thesecosts him$1,500. John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use thefootpath. Required: With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 39P
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Question
John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year.
- John incurred legal expenses as he was sued for falseadvertising.
- John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him$22,000.
- Johnordered1000newT-shirtswithprintedCityConv’slogosformarketingpurposes.Thesecosts him$1,500.
- John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use thefootpath.
Required:
With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events.
John owns a convenience shop called City Conv. The following events occurred for John during 2019- 2020 financial year.
- John incurred legal expenses as he was sued for falseadvertising.
- John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him$22,000.
- Johnordered1000newT-shirtswithprintedCityConv’slogosformarketingpurposes.Thesecosts him$1,500.
- John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use thefootpath.
Required:
With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events.
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