Dr. Cheng retired as a lecturer from Universiti Putra Malaysia upon reaching the age of 60 years on 1 June 2019. He provided the following information regarding his incomes and expenses in the year 2020. Item Gratuity (received in year 2020) Dividend Interest on fixed deposit from CIMB RM 40,500 7,490 4,000 Royalty: Publication of book Translation fee (requested by Ministry) 40,000 25,000 45,000 3,500 Shop lot in Kangar (2nd tenant) Receipts: Rental (January until September 2020) Utility deposit (refundable) Expenses: Legal fee for tenant agreement Advertising cost Repair (carry out in June 2020) Bank interest (annual) Assessment (annual) 1,200 800 4,900 1,100 1,800 52,000 6,500 4,000 Shop lot in Kubang Pasu (1st tenant) Receipts: Rental (April until December 2020) Advance rental Utility deposit (refundable) Expenses: Legal fee for 1st tenant agreement Advertising cost to find 1st tenant Upgrade doors Bank interest (annual) Installation of CCTV Assessment (annual) 1,600 850 2,900 3,500 6,500 3,000 Dr. Cheng paid RM 8,500 to a colleague to edit the book. He does not provide maintenance and support services comprehensively and actively for his properties. Dr. Cheng also works as a freelance wedding planner with gross income of RM 82,000 for the year 2020. Required: (a) Calculate the aggregate income of Dr. Cheng for the year of assessment 2020. (b) In respect of expenses of a revenue nature that are incurred by an individual owner of a rented property assessed under the provisions of Section 4(d), discuss briefly the deductibility of these expenses in arriving at the adjusted income when the properties are not generating any rental income under the following situations: (i) Pre-commencement (ii) Short term or temporary period of no income Dr. Cheng retired as a lecturer from Universiti Putra Malaysia upon reaching the age of 60 years on 1 June 2019. He provided the following information regarding his incomes and expenses in the year 2020. Item Gratuity (received in year 2020) Dividend Interest on fixed deposit from CIMB RM 40,500 7,490 4,000 Royalty: Publication of book Translation fee (requested by Ministry) 40,000 25,000 45,000 3,500 Shop lot in Kangar (2nd tenant) Receipts: Rental (January until September 2020) Utility deposit (refundable) Expenses: Legal fee for tenant agreement Advertising cost Repair (carry out in June 2020) Bank interest (annual) Assessment (annual) 1,200 800 4,900 1,100 1,800 52,000 6,500 4,000 Shop lot in Kubang Pasu (1st tenant) Receipts: Rental (April until December 2020) Advance rental Utility deposit (refundable) Expenses: Legal fee for 1st tenant agreement Advertising cost to find 1st tenant Upgrade doors Bank interest (annual) Installation of CCTV Assessment (annual) 1,600 850 2,900 3,500 6,500 3,000 Dr. Cheng paid RM 8,500 to a colleague to edit the book. He does not provide maintenance and support services comprehensively and actively for his properties. Dr. Cheng also works as a freelance wedding planner with gross income of RM 82,000 for the year 2020. Required: (a) Calculate the aggregate income of Dr. Cheng for the year of assessment 2020. (b) In respect of expenses of a revenue nature that are incurred by an individual owner of a rented property assessed under the provisions of Section 4(d), discuss briefly the deductibility of these expenses in arriving at the adjusted income when the properties are not generating any rental income under the following situations: (i) Pre-commencement (ii) Short term or temporary period of no income
