Quiz contains 8 short questions.
Alex received $70 from his uncle for his birthday. Does Alex need to declare this as income?
Yes, Alex must declare all income of $70 or more
Yes, but only if the $70 was received electronically
No, gifts such as birthday presents, are not taxable
Jane is a guitar teacher at a music school. Jane uses her car to travel from home to work, with her guitar. Can Jane claim car expenses?
Yes, as Jane is carrying her guitar
Yes, but only when public transport is unavailable
No, travel expenses incurred in travelling from home to work are private expenses and not deductible
Jessica completed a real estate course to get a registration certificate so she can start work. Can Jessica claim the course costs as a work-related expense?
Yes, because Jessica needed to complete the real estate course and obtain the certificate of registration before she could obtain work as a real estate agent
No, because Jessica is not yet working as a real estate agent, these expenses are not sufficiently connected to earning Jessica’s current income
Paul is the sole owner of a residential rental property. Can he claim travel expenses in his 2018 tax return for his trips to inspect the property?
Yes, as long as Paul doesn’t use a property manager
No, travel expenses by owners to visit rental properties are no longer deductible
Yes, all expenses relating to investment properties are deductible
Carl works in a clothes shop and is asked by his boss to buy and wear the store’s clothing. Carl receives a 50% discount. Can he claim a tax deduction?
No, because the cost of purchasing conventional clothing is not deductible
No, because the clothing was bought at a discounted rate
Yes, because Carl has no choice but to buy the clothing
Fiona’s boss allows her to work from home two days per week. She works in a study which her son also uses to study in. what expenses can Fiona claim?
Fiona can’t claim any costs, as the area is not set aside exclusively for working from home
Fiona can claim the work-related portion of her running costs for the study such as lighting, heating and cooling, cleaning costs, and depreciation on equipment
Fiona can claim running costs, plus occupancy costs, including rent or mortgage interest, property insurance, land taxes and rates
Maria has a rental property, which she rents to her sister at ‘mates rates’. Can she claim deductions for the periods her sister rents the property?
Yes, but Maria can only claim deductions for expenses up to the amount of the income she receives.
Yes, as long as it is a genuine rental property
No, Maria can’t claim deductions when she rents to family and friends
Tim uses Airbnb to rent out a room in his house for a part of the year to make some spare money. Does he need to declare the rental income?
Yes, Tim must declare all income
No, as long as the room represents less than 20% of Tim’s home
No, as the room is rented out for less than a month