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Merry is a chef. She runs her own restaurant business. During the year, Merry incurred the following expenses.
Advise Merry as to whether the expenses below would be deductible for income tax purposes.
- Salary costs to casual employees of $50,000.
- Partly Deductible
- Non-deductible
- Fully Deductible
- Salary costs of $2,000 to her sister (the amount is excessive, compared to the same job performed by others).
- Partly Deductible
- Non-deductible
- Fully Deductible
3. Travel costs of $8,000 for travel from her home to her restaurant.
- Partly Deductible
- Non-deductible
- Fully Deductible
4. $12,000 on protective clothing like spectacles and gloves for herself and staff.
- Partly Deductible
- Non-deductible
- Fully Deductible
5. $3,000 on a course which educates her about a new cuisine that she can add to her restaurant menu.
- Partly Deductible
- Non-deductible
- Fully Deductible
Choose A , B or C as right answer please.
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