For the year ended 30 June 2020 the LKJ Self-Managed Superannuation Fund received $40?000deductible concessional contributions were received (for four eligible members) and fully franked dividends of7?000received. The fund also sold 100 shares in Woolworths for $35 a share. These shares had been purchased by the Fund in 2004 for $5 a share. One member contributed20?000non-concessional contributions to the Fund. The Fund also paid $1 500 in accounting fees and $700 in auditing fees. What will be the taxable income of this Fund for the year ended 30 June 2020?

Question

Quizplus · Accepted Answer

The taxable income of the fund can be calculated by adding the deductible concessional contributions, net investment income (including capital gains and dividends), and subtracting deductible expenses. The capital gain on the sale of shares is $30 per share (selling price $35 - purchase price $5) for 100 shares, totaling $3,000. The fully franked dividends are $7,000. The deductible expenses are $1,500 (accounting fees) + $700 (auditing fees) = $2,200. Therefore, the taxable income is $40,000 (concessional contributions) + $3,000 (capital gains) + $7,000 (dividends) - $2,200 (deductible expenses) = $47,800. Non-concessional contributions are not included in taxable income.

For the Year Ended 30 June 2020 the LKJ Self-Managed