messageQ&A notifications account_circle Business AccountingQ&A LibraryQuestion 1 Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house. The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting. Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer. Question 1 Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house. The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting. Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer. Question Question 1 Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house. The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting. Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer.

messageQ&A notifications account_circle Business AccountingQ&A LibraryQuestion 1 Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house. The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting. Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer. Question 1 Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house. The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting. Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer. Question Question 1 Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house. The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting. Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question 1 Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house. The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting. Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer.

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Question 1

Jo, a lawyer, took a voluntary redundancy from her full-time position at a law firm. She had done some photography when she was younger and decided to engage an architect to build her a dark room in her house.

The dark room was completed at a cost of $55,000, equipped with all of the equipment that she needed to take her photography further. Jo advertised her services in the local newspaper and hired an assistant to help carry her expensive photography equipment around photo shoots, but few people were interested in paying Jo for her photography. For the year ending 30 June 2020 Jo sold $12,200 worth of professionally finished photographs and had expenses of $16,500. She is considering selling her photography equipment and taking up painting.

Referring mainly to income tax cases, advise Jo of the tax implications of these activities. Would she be carrying on a business? What implications would this have? Please include specific advice on whether receipts would be assessable and whether expenses would be deductible. Refer to relevant cases and statutory provisions in your answer.

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