FACTS: For the 2020 income year, Peter Pan has the following income and expenditure: Salary of $150,000. Rental income and expenses from several properties: (a) A residential rental property in Mt Eden with a rental income of $51,000 p.a. Property management fees are $4,000 p.a. Other deductible expenses that relate to this property are $109,000 p.a. (e.g. rates, interest, etc). (b) A residential rental property in Mt Taranaki with a rental income of $40,000 p.a. Property management fees are $2,000 p.a. Other deductible expenses that relate to this property are $30,000 p.a. (e.g. rates, interest, etc). (c) A commercial property in Mt Wellington (used predominantly as a business premise) with a rental income of $100,000 p.a. Property management fees of $3,000 p.a. Other deductible expenses that relate to this property are $98,000 p.a. (e.g. rates, interest, etc). Peter Pan lives in a three-bedroom home in Wellington which he owns, and he occasionally lists one of his bedrooms on Airbnb to generate some extra income. During the 2020 income year, the room was rented out for 40 nights, charging $100 per night. Peter Pan worked out the portion of expenses that relate to the provision of the accommodation to be $41 a night (includes utilities, costs, etc). Peter Pan works full time for Tinkerbell Ltd. The shares in Tinkerbell Ltd are held 90% by Peter Pan Family Trust and 10% by Peter Pan. Peter Pan is the settlor of the Peter Pan Family Trust. During the year 2019-20, Tinkerbell Ltd provided an interest free loan to Peter Pans Family Trust as well as a laptop that costs $6,000 for Peter Pan to use at work and at home. ISSUE 1A (40 marks) Is Peter Pan able to offset any losses he incurs in relation to all his rental properties against his salary? Assume that none of the properties are revenue account property. (You are required to show all calculations for the net rental income or loss for his rental properties). CONCLUSION REASONING ISSUE IB (20 marks) Will Peter Pan be taxed on the income he derives from providing the Airbnb accommodation? (You are required to show all calculations). CONCLUSION REASONING 4 ISSUE 1C (30 marks) Are there any FBT consequences in respect of the interest free loan provided by Tinkerbell Ltd to Peter Pan Family Trust and the laptop to Peter Pan? CONCLUSION .. REASONING ..