BTF3931 Study Guide - Final Guide: Capital Gains Tax, Capital Expenditure

• School: Monash University
• Department: Business - BTF
• Course: BTF3931
• Professor: Johnathan

Document Summary

Specific deductions) other deductibles & provisions that limit deductibility (w11) (legislation: sec 8-5) Section 25-5 provides taxpayers with a deduction for certain costs, including expenses incurred to: ma(cid:374)agi(cid:374)g thei(cid:396) (cid:862)tax affairs(cid:863, comply with a notice or obligation imposed on the taxpayer by a commonwealth law (cid:396)elati(cid:374)g to the ta(cid:454)pa(cid:455)e(cid:396)"s ta(cid:454) affai(cid:396)s. For certain valuations: definition of (cid:862)tax affairs(cid:863) a(cid:374)d (cid:862)tax(cid:863) li(cid:373)it the dedu(cid:272)tio(cid:374) to i(cid:374)(cid:272)o(cid:373)e ta(cid:454) o(cid:271)ligatio(cid:374) o(cid:374)l(cid:455): sec995- Bad debts: a deduction for bad debts under s25-35 is available when the following criteria is met: Corporate taxpayers must satisfy loss recoupment tests to claim bad debts s25-35(5) Gifts: b(cid:396)oadl(cid:455) (cid:862)gifts(cid:863) o(cid:396) (cid:272)o(cid:374)t(cid:396)i(cid:271)utio(cid:374) g(cid:396)eate(cid:396) tha(cid:374) (cid:373)ade to (cid:271)e a (cid:862)deductible gift recipient(cid:863) is deductible under div. It may be possible to have a loss or outgoing deductible under s8-1 if a nexus between the gift and the gaining or producing of assessable income can be established.