Response to the following problem:
Ms Adder is a 28 year old individual resident of Australia (Melbourne) for taxation purposes. She was employed as an accountant for the full 2017 financial year with the exception of 2 months spent in the United States on a working holiday and a period of 4 weeks on her return unemployed. The following information relates to the year ended 30 June 2017:
Receipts
Gross Salary as per Payment Summary (note 1) $75,524
Fully Franked dividends received 3,800
US Gross Salary (note 2) 8,240
Gross rent received 5,200
Payments
Expenses relating to the rental property (all deductible) 8,500
Personal contribution to a complying superannuation fund 2,500
Airfares to the US 2,000
Other deductible expenditure relating to Australian income 1,000
Notes:
1. The Payment Summary also showed $28,000 PAYG deducted, a Reportable Fringe Benefit amount of $4,200 and a Reportable Employer Superannuation Contribution amount of $3,500.
2. The US salary was received from employment during her 2 month stay in Las Vegas as a casino card dealer. US tax deducted (in Australian Equivalent dollars) was $995.
Can the airfares to the US be deducted? Why?