We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Australian Income Tax Guidance Notes

Categories Australia, Economics, Income Tax, State, Tax

Essay, Pages 2 (485 words)

viewsViews

viewsViews

Essay, Pages 2 (485 words)

However, there is a catch; you can only treat it as your main residence for 6 years. Hence nearing the end of the 6 year period you would need to move back into the house and re-establish it as your main residence.

Don't waste time.

Get a verified writer to help you with Australian Income Tax Guidance Notes

HIRE verified writer

$35.80 for a 2-page paper

Put simply, you can only have one tax free house at any one time that has to be established as your main residence and if you move out you only have 6 years for it to continue to be your main residence. Topic 5 Annuities and Foreign Pensions Topic 6 Termination payments Topic 7 Small Business Entities

Valuation of trading stock (S9-180) The three bases to value the trading stock are as following: * Cost (S9-190) * Market selling value (S9-220) * Replacement value (S9-225) 08. 1. 1 Methods used to work out the cost of trading stock (S9-200) The commissioner accepts the following valuation methods: * FIFO: The first items purchased are assumed to be disposed of first and the cost of trading stock on hand at the end of the year is the cost of the items most recently acquired.

Where shares cannot be specifically identified, taxpayers must normally use the FIFO method to value trading stock. * Average cost: the cost of each item of a particular type on hand at the end of the year is the weighted average of the cost of all such items that were on hand at the beginning of the year and all those acquired during the year. * Standard cost: a predetermined standard cost per unit is used. The following valuation methods are not acceptable: * LIFO: Late in first out * Base stock: 08.

Top writers

Chris Al

shield Verified writer

starstarstarstarstar 4.9 (478)

Marvellous

shield Verified writer

starstarstarstarstar 4.7 (239)

Sweet V

shield Verified writer

starstarstarstarstar 4.9 (984)

HIRE verified writer

1. 1. 1 Trading stock on hand taken into account

Where a taxpayer carries on business, all trading stock on hand at the start of the income year and all trading stock on hand at the end of the year are taken into account in working out the taxpayer’s taxable income. Where trading stock is acquired ‘not at arm’s length’, the market value is used. The taxpayer is required to include the market value as assessable income. 08. 1. 1. 2 Disposal not in the ordinary course of business (S9-290) * When trading stock is sold in the ordinary course of trading, gross sales less the cost of production are brought to account by the ordinary trading stock accounting method.

Where an item of trading stock (with or without other business assets) is disposed of outside the ordinary course of a taxpayer’s business, the taxpayer is required to bring to account as assessable income the market value of the stock on the date of disposal. * The taxpayer takes out stock from his/her business and used it privately is required to bring to account as assessable income the market value of the stock on the date of drawing. Topic 9 General Deductions 09. 1 Deductions for business-related expenditure

Cite this essay

Australian Income Tax Guidance Notes. (2018, Oct 27). Retrieved from https://studymoose.com/australian-income-tax-guidance-notes-essay

Stay safe, stay original

It’s fast
It’s safe
It’s FREE
check your essay for plagiarism

Not Finding What You Need?

Search for essay samples now

image

Your Answer is very helpful for Us
Thank you a lot!