One of Suman's customers bought some computer equipment for $19,000 on credit on 21 June 2019 but could not pay the account, which was issued on the same day. The customer went bankrupt in November 2019. Suman wrote off the debt on 1 July 2020. In May 2019, Suman decided to take a night off and go to Star City Casino. It was his lucky night. He won $4,150,000 playing the card game "blackJack". His friends told him it was "beginners luck". In July 2019, Suman decided to use the winning money from the casino to purchase a truck for $125,000 and used it as a delivery vehicle for his business. Suman often delivered computer equipment to his customer directly from his suppliers and the toll fares that he incurred for these delivery trips were $2,658 for the 2020 financial year. He had to lodge a tax return for the year ended 30 June 2020 and seek your advice whether he would be able to claim any deduction (including the truck if any) for his business. In October 2019, Suman also invested the winning money towards an investment property in Sydney for $1.5million. He decided to sell the properties a few months later in August 2020 for $2.8 million because of the attractive gain. The net proceeds from the sale (after all relevant costs/expenses) is $328,000. Explain how return for the year ending 30 June 2020. Determine Suman's taxable income for 2020 you would account for these events from the perspective of the Income Tax
One of Suman's customers bought some computer equipment for $19,000 on credit on 21 June 2019 but could not pay the account, which was issued on the same day. The customer went bankrupt in November 2019. Suman wrote off the debt on 1 July 2020. In May 2019, Suman decided to take a night off and go to Star City Casino. It was his lucky night. He won $4,150,000 playing the card game "blackJack". His friends told him it was "beginners luck". In July 2019, Suman decided to use the winning money from the casino to purchase a truck for $125,000 and used it as a delivery vehicle for his business. Suman often delivered computer equipment to his customer directly from his suppliers and the toll fares that he incurred for these delivery trips were $2,658 for the 2020 financial year. He had to lodge a tax return for the year ended 30 June 2020 and seek your advice whether he would be able to claim any deduction (including the truck if any) for his business. In October 2019, Suman also invested the winning money towards an investment property in Sydney for $1.5million. He decided to sell the properties a few months later in August 2020 for $2.8 million because of the attractive gain. The net proceeds from the sale (after all relevant costs/expenses) is $328,000. Explain how return for the year ending 30 June 2020. Determine Suman's taxable income for 2020 you would account for these events from the perspective of the Income Tax
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 5DQ
Related questions
Question
tax law BACC3004
Transcribed Image Text:One of Suman's customers bought some computer equipment for $19,000 on credit on 21
June 2019 but could not pay the account, which was issued on the same day. The
customer went bankrupt in November 2019. Suman wrote off the debt on 1 July 2020.
In May 2019, Suman decided to take a night off and go to Star City Casino. It was his lucky
night. He won $4,150,000 playing the card game "blackJack". His friends told him it was
"beginners luck".
In July 2019, Suman decided to use the winning money from the casino to purchase a
truck for $125,000 and used it as a delivery vehicle for his business. Suman often
delivered computer equipment to his customer directly from his suppliers and the toll
fares that he incurred for these delivery trips were $2,658 for the 2020 financial year. He
had to lodge a tax return for the year ended 30 June 2020 and seek your advice whether
he would be able to claim any deduction (including the truck if any) for his business.
In October 2019, Suman also invested the winning money towards an investment
property in Sydney for $1.5million. He decided to sell the properties a few months later in
August 2020 for $2.8 million because of the attractive gain. The net proceeds from the
sale (after all relevant costs/expenses) is $328,000.
Explain how you would account for these events from the perspective of the Income Tax
return for the year ending 30 June 2020. Determine Suman's taxable income for 2020
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT