Sandra paid $440 in fees to an accounting firm to prepare her previous year’s tax return. She also
paid the firm $1,100 to seek a private ruling about whether shares that she had recently sold are
subject to CGT. Advise Sandra whether she is entitled to deductions for her expenditure.
John borrowed $500,000 from a bank to purchase shares in BHP. The loan is for a period of 20
years. To establish the loan, John was required to pay a $2,000 fee. Can John deduct the fee? Would
your answer be different if he used some of the borrowed funds to go on a holiday? [
Gerry is a retired civil engineer whose only income is his superannuation pension. For many years,
he has been a member of the Australian Civil Engineer’s Association. Can he deduct his $350 annual
membership fee?