Advise greg as to the tax deductibility


Problem

Greg 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 $2,400 from home to hospital, $1,200 between hospital and the local university and another $9,000 from the university back to home. In the current income year, Greg opens his own practice, servicing local residents. He usually drives to his local practice. The annual car maintenance and service costs $3,800 and 50% usage of the car is for private. He rented an office for $12,000 a month. In order to run the business, he has to put his beloved dog and cat to a local pet shop for pet minding. He incurs $30,000 pet minding fees for the income year. This pet minding fees cause Greg to take out a small loan from the local bank to catch up with his outgoings. To this end Greg is required to service $242 monthly interest expense for the bank loan. Occasionally Greg is required to travel from his local practice to the local university for his research work and he incurs $800 in travelling expenses this income year. Greg is also a member of a political party where he donates $800 every year. He also purchases $200 worth of raffle tickets from his political party to help them raise fund in the current income year. On the way home from a meeting convened by his political party, he was caught by a speed camera doing 80km/hr in a 60km/hr zone and a few weeks later he received a Speeding Fine $280.

Task

Advise Greg as to the tax deductibility for the above expenditures with reference to the relevant tax laws and case laws.

The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.

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