Question:Q. 1. Advise your client on how the following items, receipts or expenses, will be treated for tax purposes under Australian tax law:

a. A landlord owns a flat he leases to tenants. A new tenant pays the landlord before the start of the lease a lump sum of $15,000 as part of the lease negotiations.

b. Cheryl owned a warehouse destroyed by a fire. Her insurance company paid her compensation of $500,000 for the loss.

c. During the tax year 2016-17 Boris paid his tax agent $500 for the lodgement of his 2015-16 individual income tax return and $800 for the preparation and lodgement of the objection to the 2015-16 assessment.

d. James works at a hospital and when he is at work he buys his lunch at the cafe in the hospital. Over the course of a year he spends $2,000.

e. Frances started a new business and at the launch of the business she hired a restaurant and invited over one hundred potential clients for the business. The cost of hiring the venue and providing food and drink was $5,000.

To support the analysis in your answers refer where appropriate to the ITAA 1936, ITAA 1997, Tax Rulings and/or case law. Please answer each question separately with sub question number