SELF EDUCATION EXPENSES 2007 Basic Chapter 4 Q 4c

Taxpayer’s name	Mai Lin
Place of education		Qualification	B. Accounting
Nexus between major studies and current income Taxpayer has a diploma of accounting and works as an accountant. She is upgrading her qualification to a university degree.

CATEGORY A
Course fees
Textbooks		389
Stationery
Home study
Photocopying & postage		75
Student union		357
Computer-related expenses		368
Internet
Car expenses (log book or 1/3)
Other travel
Accommodation
Other			TOTAL A	1189
CATEGORY B
Decline in value (deprn) from schedule			TOTAL B
CATEGORY C
Repairs to equipment			TOTAL C
CATEGORY D
Car expenses (cents/km or 12 per cent)		546	TOTAL D	546
CATEGORY E
Non-deductible travel		197
Capital costs (self-edn portion)
Child care related to self-education
Other			TOTAL E	197
$250 MINUS [ C ( ) plus D ( 546 ) plus E ( 197 ) ] =				0	F (cannot be a minus amount)
			A – F =	1189	G (cannot be a minus amount)
B
C
D	546
G	1189
Total item D4	1735

26c/hr HOME STUDY CLAIM

This claim covers heating and lighting and depreciation of basic furniture (desks, bookcases etc, but not computer equipment) and carpet.

If furniture for the home study has been bought, and there are expenses for heating and lighting, a dual claim cannot be made.

Substantiation - for the amount under the threshold, and for Category E, no formal substantiation, but it should be possible to show how the money was spent.

For other expenses, the normal substantiation rules apply.

Codes:

K Study will improve skill in this occupation

I Study will lead to higher income in this occupation

O Other