Byron Bay Beer Pty Ltd is a successful boutique brewery on the NSW north coast. The company’s average annual turnover is $25 million. During the year they incurred the following expenditure (all exclusive of GST). Calculate the maximum income tax deduction available for Byron Bay Beer in the year ended 30 June 2021 in respect of each of the transactions. Show all working. Ignore any available COVID stimulus measures. 1/08/2020 $95,000 for a new motor vehicle for the exclusive use of the finance manager. Effective life 6 years. 1/12/2020 $20,000 to pay HELP/HECS in respect of employment related university courses undertaken by current employees. 1/02/2021 $5,000 cash stolen by an employee that was never recovered. 1/03/2021 $5,500 replacing a damaged motor in the delivery truck. The damaged motor was replaced with one of the same capacity. The new motor will have an effective life of 5 years.
Byron Bay Beer Pty Ltd is a successful boutique brewery on the NSW north coast. The company’s average annual turnover is $25 million. During the year they incurred the following expenditure (all exclusive of GST).
Calculate the maximum income tax deduction available for Byron Bay Beer in the year ended 30 June 2021 in respect of each of the transactions. Show all working. Ignore any available COVID stimulus measures.
1/08/2020 $95,000 for a new motor vehicle for the exclusive use of the finance manager. Effective life 6 years.
1/12/2020 $20,000 to pay HELP/HECS in respect of employment related university courses undertaken by current employees.
1/02/2021 $5,000 cash stolen by an employee that was never recovered.
1/03/2021 $5,500 replacing a damaged motor in the delivery truck. The damaged motor was replaced with one of the same capacity. The new motor will have an effective life of 5 years.
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