MLC301 Principles of Income Tax Law - Assessment Questions

QUESTION 4. 23

A review of the records of Mary Lyon showed that during the current tax year she had given the following gifts.
(a) $500 in cash as Christmas presents to her grandchildren
(b) $50 to the Royal Children’s Hospital appeal
(c) $2600 to her Church (assume it is a recognized religious body)
(d) A compulsory payment of $4000 made to a non-profit private school building fund.
What is the amount that Mary could claim as a gift in her income tax return for the year? Explain how you derived your answer.