Jim and Bob each own 50% in a hotel building in Bondi. For the last few years, they always split any net profits equally. During the last financial year, Jim lost his job as an accountant and started managing the hotel full time. As a result, Jim and Bob came to a private agreement that Jim should receive 70% net profits, instead of 50% During the 2021 tax year, gross income from the hotel was $350,000. The business recorded the following expenses: - Employee salaries $90,000 - Employee superannuation $ 6,750 - Utilities and cleaning expenses for the hotel $10,000 - Superannuation – Jim $15,000 - Superannuation – Bob $15,000 Required: Answer the following questions based on the above information. (You must provide explanations against each calculation - including excluded amounts, and refer to law and tax rulings) (a) What is the Partnership Net Income for the 2021 income year? (b) Calculate and explain each partner’s assessable income for the 2021 income year
Jim and Bob each own 50% in a hotel building in Bondi. For the last few years, they always split any net profits equally. During the last financial year, Jim lost his job as an
During the 2021 tax year, gross income from the hotel was $350,000. The business recorded the following expenses:
- Employee salaries $90,000
- Employee superannuation $ 6,750
- Utilities and cleaning expenses for the hotel $10,000
- Superannuation – Jim $15,000
- Superannuation – Bob $15,000
Required:
Answer the following questions based on the above information. (You must provide explanations against each calculation - including excluded amounts, and refer to law and tax rulings)
(a) What is the
(b) Calculate and explain each partner’s assessable income for the 2021 income year
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