Thursday, 14 May 2020

Advise Franklin as to the tax deductibility for the above expenditures by referencing to the tax laws and case laws

Franklin is a medical doctor and a scientist. He works at a local hospital in the mornings, attending to patients.
At lunchtime he takes a train to the local university where he works in a research laboratory. At the end of the day, he takes the train home. The train fares for the year include $1,200 from home to hospital, $800 between hospital and the local university and another $1,000 from the university back to home.
In the current income year, Franklin opens his own practice, servicing local residents. He rented an office for $10,000 a month. In order to run the business, he has to put his beloved dog to a local pet shop for pet minding. He incurs $ 20,000 pet minding fees for the income year.
Advise Franklin as to the tax deductibility for the above expenditures by referencing to the tax laws and case laws (8 marks).

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