Can the air fares to the us be deducted


Response to the following problem:

Ms Adder is a 28 year old individual resident of Australia (Melbourne) for taxation purposes. She was employed as an accountant for the full 2017 financial year with the exception of 2 months spent in the United States on a working holiday and a period of 4 weeks on her return unemployed. The following information relates to the year ended 30 June 2017:

Receipts

Gross Salary as per Payment Summary (note 1) $75,524

Fully Franked dividends received 3,800

US Gross Salary (note 2) 8,240

Gross rent received 5,200

Payments

Expenses relating to the rental property (all deductible)      8,500

Personal contribution to a complying superannuation fund    2,500

Airfares to the US     2,000

Other deductible expenditure relating to Australian income    1,000

Notes:

1. The Payment Summary also showed $28,000 PAYG deducted, a Reportable Fringe Benefit amount of $4,200 and a Reportable Employer Superannuation Contribution amount of $3,500.

2. The US salary was received from employment during her 2 month stay in Las Vegas as a casino card dealer. US tax deducted (in Australian Equivalent dollars) was $995.

Can the airfares to the US be deducted? Why?

Request for Solution File

Ask an Expert for Answer!!
Taxation: Can the air fares to the us be deducted
Reference No:- TGS02128163

Expected delivery within 24 Hours