Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
a ) Mr James purchased a piece of land and signed an agreement for its purchase on 1 4 July 2 0 1 6 at
a Mr James purchased a piece of land and signed an agreement for its purchase on July at an agreed price of RM He settled the payment fully on September upon obtaining a bank loan. The vendor then transferred the land to him on November Mr James incurred the following expenses in acquiring the land: stamp duty of RM and legal fees of RM Mr James spent RM on levelling the land after the purchase. In February the land was partially damaged by a flash flood and he was paid a compensation of RM Again in April the land was flooded, and he received a further compensation of RM In October Mr James decided to sell off the land. He advertised for the sale and a buyer responded and paid a deposit on RM after some initial negotiation. The buyer was not successful in obtaining a bank loan to buy the land, and Mr James forfeited the deposit of RM A dispute arose regarding the title to the land from a third party, and Mr James had to retain a lawyer to successfully defend his right to the land. The legal fee was RM Subsequently, another buyer agreed to purchase the land for RM after a hard bargain, and he signed an agreement with Mr James on October The payment was settled on November The title was transferred to the buyer on December In securing a buyer for the land, Mr James had incurred the following expenditure: valuation fee: RM; advertisement: RM; brokerage fee RM Up to the time of sale, Mr James had incurred an interest charge of RM on the mortgage loan he took to buy the land and had also incurred legal fees of RM to a lawyer to advise and handle the disposal. Required: In relation to the Real Property Gains Tax RPGT Act determine the RPGT for the disposal of the land. marks b Mr James have another property, a piece of vacant land. On December his land costing RM was compulsorily acquired by the Government for the construction of a railway station. He received compensation of RM Required: Discuss the tax implication on the receipt of compensation of RM marks Total: marks
a Mr James purchased a piece of land and signed an agreement for its purchase on July
at an agreed price of RM He settled the payment fully on September upon
obtaining a bank loan. The vendor then transferred the land to him on November Mr
James incurred the following expenses in acquiring the land: stamp duty of RM and legal
fees of RM Mr James spent RM on levelling the land after the purchase.
In February the land was partially damaged by a flash flood and he was paid a compensation
of RM Again in April the land was flooded, and he received a further compensation
of RM
In October Mr James decided to sell off the land. He advertised for the sale and a buyer
responded and paid a deposit on RM after some initial negotiation. The buyer was not
successful in obtaining a bank loan to buy the land, and Mr James forfeited the deposit of
RM
A dispute arose regarding the title to the land from a third party, and Mr James had to retain a
lawyer to successfully defend his right to the land. The legal fee was RM
Subsequently, another buyer agreed to purchase the land for RM after a hard bargain, and
he signed an agreement with Mr James on October The payment was settled on
November The title was transferred to the buyer on December
In securing a buyer for the land, Mr James had incurred the following expenditure: valuation fee:
RM; advertisement: RM; brokerage fee RM
Up to the time of sale, Mr James had incurred an interest charge of RM on the mortgage
loan he took to buy the land and had also incurred legal fees of RM to a lawyer to advise and
handle the disposal.
Required:
In relation to the Real Property Gains Tax RPGT Act determine the RPGT for the disposal
of the land.
marks
b Mr James have another property, a piece of vacant land. On December his land
costing RM was compulsorily acquired by the Government for the construction of a
railway station. He received compensation of RM
Required:
Discuss the tax implication on the receipt of compensation of RM
marks
Total: marks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started