Dear Tax Agent, It was great meeting you last week. Please find enclosed the partnership profit and loss statement and Balance sheet and other information you requested relating to our 2021...

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Dear Tax Agent, It was great meeting you last week. Please find enclosed the partnership profit and loss statement and Balance sheet and other information you requested relating to our 2021 partnership and individual income tax returns. Partnership • We do not use small business concessions but would like to minimise our tax liability. • Our home address is a 220 Yellow Street Willoughby 2068. • Monique's TFN is XXXXXXXXXX. • Aden's TFN is XXXXXXXXXX. • Total Loan Repayments made to Monique $80,000 including $63,000 interest. • The opening balance of accounts receivable was $30,000. Business return on accruals basis We would also like you to consider the following as we believe they may affect our tax returns. Included in the salary and wages is $20,000 paid to our daughter Milo (age 17), Milo works on reception for us 3 afternoons a week after school. She worked for 48 weeks of the year Can we claim all of this? As discussed with you we sold the premises in which we were operating the business and decided to lease the premises. You mentioned that we might have to pay capital gains tax on this. How do we do that? We received $835,000 from the disposal on 1/7/20 after $15,000 agent fees. We purchased the property in 2013 for $495,000. During the year, we spent $20,000 on new office desks. We have included these in our plant and equipment in our balance sheet During the year, we took out the following amounts for personal expenses: • Monique-100,000. • Aden-140,000. A receipt has also been obtained for a donation of $3,000 made by Monique to the Red Cross. As discussed, we authorise you to prepare our 2021 partnership and individual tax returns. Please let us know if you have any further questions. Kind regards, Monique and Aden. A MA Speech Pathology Clinic Profit and loss statement for the year ending 30 June 2021 Income Cash sales $615,000 Less Expenses Salaries paid to employees(includes $20,000 paid to Milo) $186,000 Rent of premises after sale of freehold $92,000 Bad debts $2,500 Interest paid to Monique $63,000 Superannuation contributions on behalf of Monique $15,000 Superannuation contributions on behalf of Aden $5,000 Supplies and overheads $27,300 Depreciation $25,000 $413,800 Net profit $201,200 MA Speech Pathology Clinic Balance sheet as at 30 June 2021 Current Assets 222,600 Cash at Bank 162,600 Deposits at call 20,000 Debtors-Opening balance 40,000 Non-Current assets 487,400 Plant and Equipment (includes $20,000 paid for new office desks) 507,400 Less accumulated depreciation 20,000 Total assets 710,000 Current Liabilities 160,000 Loan—Monique 150,000 Creditors 10,000 Total Liabilities NET ASSETS 550,000 Partners equity 550,000 Capital—Monique 350,000 Capital—Aden 250,000 You have previously reviewed the partnership agreement that you have received at the initial meeting and extracted the following: • All profit and losses are to be distributed equally after allowing for interest on capital at 6% and interest on drawings at 9%. It also states that Partnership income is equally spilt after considering salaries. • Partnership TFN XXXXXXXXXX. • Partnership ABN XXXXXXXXXX. • Post address PO BOX 555 Willoughby 2068. • Main business Speech Pathology clinic. • The clinic has been operating since 1 July 2007. • The business does not sell on the internet. • Main business address 12 Green Willoughby
Answered 5 days AfterApr 10, 2022

Solution

Sandeep answered on Apr 16 2022
12 Votes
Page 1Sensitive (when completed)NAT 0659-06.2020
Day Month Year Day Month Yea
to
Or specify period if part year or approved substitute period.
When completing this return
n    Print clearly, using a black pen only.
n    Use BLOCK LETTERS and print one character in each box.
    
S M I T H S T
n    Place X in all applicable boxes.
Notes to help you prepare this tax return
are in the Partnership tax return instructions
2020 (the instructions), available on our
website ato.gov.au
Partnership tax return 2020
Name of partnership
Australian business number (ABN)
Partnership information
Tax file number (TFN) Have you attached any ‘other attachments’? Yes No
See the Privacy note in the Taxpayer’s declaration.
Previous name of partnership
If the partnership name has changed, print the previous name exactly as shown on the last tax return lodged.
State/te
itory PostcodeSubu
town
Cu
ent postal address
If the address has not changed, print it exactly as shown on the last tax return lodged.
Country if not Australia
Postal address on previous tax return
Subu
town State/te
itory Postcode
If the address has changed, print the previous address exactly as shown on the last tax return lodged.
Country if not Australia
06590620
0 1
6 5 4 1 2 3 9 8 7
M A S P E E C H P A T H O L O G Y C L I N I C
1 2 7 8 9 6 5 6 1 2 3
S A M E A S A B O V E
S A M E A S A B O V E
N S W 2 0 6 8
0 7 2 0 2 0 3 0 0 6 2 0 2 1
Type text here
P O B O X 5 5 5 W I L L O U B H Y
Page 2 Sensitive (when completed) PARTNERSHIP TAX RETURN 2020
Interposed entity election status
If the partners have an existing election, write the earliest income year specified.
If the partners are making one or more elections this year, write the earliest income year being specified and
complete an Interposed entity election or revocation 2020 for each election.
If revoking an interposed entity election, print R and complete and attach the Interposed
entity election or revocation 2020.
Final tax return No Yes
1 Description of main business activity
Industry code A
Full name of the partner to whom notices should be sent
If the partner is an individual print details here.
Surname or family name
First given name Other given names
Title: Mr Mrs Miss Ms Othe
If the partner is a company or trust, print details including ABN here.
ABN
Name
2 Status of business – print X at label B1, B2 or B3, whichever is the first applicable option, or leave blank.
Multiple business B1 Ceased business B2 Commenced business B3
Consolidated subsidiary member Z2
Significant global entity G1
Consolidation status – print X at label Z2 if applicable
Entity status Country by country reporting entity G2
J O N E S
M O N I Q U E
S P E E C H P A T H O L O G Y C L I N I C
8 5 3 9 9
Page 3Sensitive (when completed)PARTNERSHIP TAX RETURN 2020
Partnership TFN
Income excluding foreign income
5 Business income and expenses
Total
usiness income
Income
Gross payments
where ABN not quoted C D
Other business income G H
Assessable
government
industry payments
E F
CODE CODE
Primary production Non-primary production Totals
WHOLE DOLLARS ONLY
Gross payments
subject to foreign
esident withholding
(excluding capital gains)
B
Contractor,
sub-contractor and
commission expenses
C
Superannuation
expenses D
Bad debts F
Lease expenses G
Rent expenses H
Total interest expenses I
Total royalty expenses J
Depreciation expenses K
Motor vehicle
expenses L
Repairs and
maintenance M
All other expenses N
Cost of sales E
OTotal expenses – labels P to N
Expenses
Foreign resident
withholding expenses
(excluding capital gains)
P
Reconciliation items
Add: Income
econciliation
adjustments
A
Add: Expense
econciliation
adjustments
B
SRQNet income or loss from business
Net small
usiness income
.00, ,V
CODE
06590720
6 5 4 1 2 3 9 8 7
$ 92,000
$ 2,500
$ 20,000
$ 92,000
$ 20,000
$ 2,500
Type text here
$ 25,000 $ 25,000
$ 6,36,600 $ 6,36,600
$ 6,36,600$ 6,36,600
$ 2,94,900 $ 2,94,900
$ 4,34,400 $ 4,34,400
Page 4 Sensitive (when completed) PARTNERSHIP TAX RETURN 2020
9 Rent Gross rent .00, ,F
Other rental deductions .00, ,H
Interest deductions , ,G .00
Capital works deductions , ,X .00
.00, ,Net rent
10 Forestry managed investment scheme income Q .00, ,
J .00, ,
11 Gross interest – including Australian Government loan interest
TFN amounts withheld
from gross interest , ,I .
8 Partnerships and trusts
Primary production
Distribution from partnerships A .00, ,,
Distributions of foreign income must be included at item 22 or 23.
Share of net income from trusts Z
Deductions relating to
amounts shown at A and Z S
Net primary production amount .00, ,,
.00, ,,
.00, ,,
Share of credits from income
Share of credit for tax withheld
where ABN not quoted
.00, ,C ,
Share of franking credits from
franked distributions
., ,D ,
Share of credit for TFN amounts
withheld from interest, dividends
and unit trust distributions
E ., ,,
Share of credit for tax withheld
– foreign resident withholding
(excluding capital gains)
.00, ,U ,
Credit for TFN amounts withheld from
payments from closely held trusts , ,O , .
Non-primary production
Distribution from partnerships,
less foreign income B
Net non-primary production amount .00, ,,
Deductions relating to
amounts shown at B and R T .00, ,,
Share of net income from trusts,
less capital gains, foreign income
and franked distributions
R .00, ,,
Franked distributions from trusts F .00, ,,
.00, ,,
Deductions relating to franked
distributions from trusts in label F G
.00, ,,
6 Tax withheld
Credit for tax withheld – foreign resident
withholding (excluding capital gains)
.00, ,U
Tax withheld where ABN not quoted .00, ,T
Page 5Sensitive (when completed)PARTNERSHIP TAX RETURN 2020
12 Dividends
TFN amounts withheld
from dividends , ,N .
K .00, ,Unfranked amount
L .00, ,Franked amount
M .00, ,Franking credit
Partnership TFN
Deductions
16 Deductions relating to Australian investment income P .00, ,
17 Forestry managed investment scheme deduction D .00, ,
18 Other deductions – show only deductions not claimable at any other item
Name of each item of deduction
, .00
, .00 Q .00,...
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