Cameron works as an accountant for PWC Pty Ltd. Hoping to increase his earnings, he re-enrolled to University to do a degree in Forensic Accounting. During the 2020 financial year, he paid $9,000 in course fees, plus $1,600 in textbooks. He also paid $900 for travel expenses to travel from his home... to university... and back to his home. Required: How much can Cameron claim in allowable deductions during the 2020 financial year? (You must give reasons for your calculations and refer to law)

Cameron works as an accountant for PWC Pty Ltd. Hoping to increase his earnings, he re-enrolled to University to do a degree in Forensic Accounting. During the 2020 financial year, he paid $9,000 in course fees, plus $1,600 in textbooks. He also paid $900 for travel expenses to travel from his home... to university... and back to his home. Required: How much can Cameron claim in allowable deductions during the 2020 financial year? (You must give reasons for your calculations and refer to law)

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter5: Deductions For And From Agi

Section: Chapter Questions

Problem 25MCQ

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Shellie, a single individual, received her Bachelor’s degree in 2019, and took a job with a salary of $45,000 per year. In 2020, she paid $1,500 of interest on qualified education loans. Which of the following statements is correct? a. Taxpayers are not allowed a deduction for education loan interest in 2020. b. If her income had been $65,000, the deductible amount would have been phased out. c. The full $1,500 is deductible in arriving at adjusted gross income (AGI). d. If her payment had been $3,000, only $2,000 would have been deductible in arriving at AGI and the $1,000 excess would have been treated as nondeductible consumer interest.
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