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Question 1Henry, a tax resident of Australia, was a famous jazz singer who passed awayrecently.Jack, apublisher was interested on Henry's life story and wantedtowriteabibliography on Henry's life. Jack approachedHenry's wife, Jenny(also a tax resident of Australia) to interview her on Henry's life story. She was offered $1 million forHenry story.Jenny waspaid $500,000 deposit before the interview. After theinterview she waspaid the balanceofthe money.Would the tax consequences have changed if Jenny had written the book herself?AdviseJenny on her tax consequences...
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Question 1Henry, a tax resident of Australia, was a famous jazz singer who passed awayrecently.Jack, apublisher was interested on Henry's life story and wantedtowriteabibliography on Henry's life. Jack approachedHenry's wife, Jenny(also a tax resident of Australia) to interview her on Henry's life story. She was offered $1 million forHenry story.Jenny waspaid $500,000 deposit before the interview. After theinterview she waspaid the balanceofthe money.Would the tax consequences have changed if Jenny had written the book herself?AdviseJenny on her tax consequences.
Question 2Sally is a single parent who is employed as an accountant. In order to attendemployment she must put her young child in a day-care centre.Sally considers theexpense is necessarily incurred in gaining her income. Would she be entitled to a taxdeduction under s8-1?AdviseSally ofher tax consequences
Question 3Josephconducts anplumbing business. With a view to future retirement he purchases20ha of land and plants native wildflowers that he plans to harvest and sell. As apreliminary measure he arranges to clear the land and plough in compost. It is expectedthat the first commercial crop will not be harvested forfive years. He incurs interest on a loan to finance the land purchase, land preparation costs, fertilizer costs and costs of acquiring native seedlings.AdviseJoseph of the tax consequences of the venture.You must cite the relevant case law and legislation
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