Ms. Pang was a Hong Kong resident and migrated to the US for more than a...

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Ms. Pang was a Hong Kong resident and migrated to the US for more than a decade ago. She returns to Hong Kong to visit her relatives and friends three to four times each year spending about a week each time. In the year 2022, Ms. Pang acquired a local residential property during her stay in Hong Kong. The purchase consideration was partially settled by a mortgage loan from a bank in Hong Kong. The property was then leased to a tenant, Mr. Cheng, under the following terms: Term of lease: four years from 1 July 2022 Monthly rental: $18,000 payable in advance on the first day of each month Rent free period: 1.5 months from 1 July 2022 (ii) (iii) (iv) Premium: HK$36,000 payable on 1 July 2022 (v) (vi) Rental deposit HK$36,000 payable on 1 July 2022 (refundable) Rates: HK$3.000 per quarter, payable by Ms. Pang (vii) Management fee: HK$1,500 per month, payable by Ms. Pang Due to financial difficulties, Mr. Cheng has only paid HK$11,000 per month as rental since January 2023 and from April 2023, Mr. Cheng did not pay any rent to Ms. Pang at all. Finally, Mr. Cheng moved out from the property on 31 July 2023 and cannot be traced anymore (the IRD agreed with Ms. Pang on the irrecoverable rent as bad debt on the same date). Ms. Pang has become more cautious in the property leasing market and finally she leased the property to another tenant, Mr. Tsang, for a one-year leasing term, with annual rental amount of HK$120,000 fully payable in advance. Rates and management fee, both in the same amount as last year, are fully payable by Ms. Pang. The new lease was effective on 1 September 2023. Ms. Pang has incurred HK$55,000 and HK$86,000 mortgage loan interest for the years ended 31 March 2023 and 2024 respectively. Ms. Pang was a Hong Kong resident and migrated to the US for more than a decade ago. She returns to Hong Kong to visit her relatives and friends three to four times each year spending about a week each time. In the year 2022, Ms. Pang acquired a local residential property during her stay in Hong Kong. The purchase consideration was partially settled by a mortgage loan from a bank in Hong Kong. The property was then leased to a tenant, Mr. Cheng, under the following terms: Term of lease: four years from 1 July 2022 Monthly rental: $18,000 payable in advance on the first day of each month Rent free period: 1.5 months from 1 July 2022 (ii) (iii) (iv) Premium: HK$36,000 payable on 1 July 2022 (v) (vi) Rental deposit HK$36,000 payable on 1 July 2022 (refundable) Rates: HK$3.000 per quarter, payable by Ms. Pang (vii) Management fee: HK$1,500 per month, payable by Ms. Pang Due to financial difficulties, Mr. Cheng has only paid HK$11,000 per month as rental since January 2023 and from April 2023, Mr. Cheng did not pay any rent to Ms. Pang at all. Finally, Mr. Cheng moved out from the property on 31 July 2023 and cannot be traced anymore (the IRD agreed with Ms. Pang on the irrecoverable rent as bad debt on the same date). Ms. Pang has become more cautious in the property leasing market and finally she leased the property to another tenant, Mr. Tsang, for a one-year leasing term, with annual rental amount of HK$120,000 fully payable in advance. Rates and management fee, both in the same amount as last year, are fully payable by Ms. Pang. The new lease was effective on 1 September 2023. Ms. Pang has incurred HK$55,000 and HK$86,000 mortgage loan interest for the years ended 31 March 2023 and 2024 respectively.