John owns a convenience shop called City Conv. The following events occurred for John during 20192020 financial year. John incurred legal expenses as he was sued for false advertising. John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000. John ordered 1000 new T-shirts with printed City Conv’s logos for marketing purposes. These costs him $1,500. John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use the footpath. Required: With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events.
John owns a convenience shop called City Conv. The following events occurred for John during 20192020 financial year. John incurred legal expenses as he was sued for false advertising. John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000. John ordered 1000 new T-shirts with printed City Conv’s logos for marketing purposes. These costs him $1,500. John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use the footpath. Required: With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events.
Chapter6: Deductions And Losses: In General
Section: Chapter Questions
Problem 39P
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Question
John owns a convenience shop called City Conv. The following events occurred for John during 20192020 financial year.
- John incurred legal expenses as he was sued for false advertising.
- John purchased new fridge to the shop - $800. In addition, his builder added more space to the shop front. This cost him $22,000.
- John ordered 1000 new T-shirts with printed City Conv’s logos for marketing purposes. These costs him $1,500.
- John received a City of Sydney fine for putting his sales item for display outside his shop without a permit. He required to apply for a permit to use the footpath.
Required:
With reference to relevant legislation and case law advise John on the assessability and/or deductibility of above events. (maximum 300 words)
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