Ingrids Personal Matters

Ingrid owns two private residential properties, which were both tenanted as at 31 December 2020. Property 1 was tenanted from 1 August 2019 to 31 January 2020 and from 1 March 2020 onwards. Property 2 was tenanted from 1 October 2018 onwards.

Being an accountant by training, Ingrid keeps track of her finances diligently. During the calendar year ended 31 December 2020, she prepared a simplified profit and loss account pertaining to both Property 1 and Property 2 as presented below.

Apart from rental income, Ingrid also received income from various passive investments funded by excess cash in the bank. During the calendar year ended 31 December 2020, she recorded the following income:

• Distributions from real estate investment trust (REIT) of $1,800;
• Dividends from both Singapore and non-Singapore resident companies of $780;
• Interests from Development Bank of Singapore of $1,240; and
• Interests from loan to cousin-in-law of $200.

Ingrid was relieved that Harvey paid for a FDW to help out with the familys household chores, especially since her own parents do not live with her in the same household. Harvey also paid for the FDW levy at the concessionary rate.

On 20 May 2020, Ingrid celebrated her 40^th birthday with Harvey, who was two years older. During the celebration, Ingrid explained to Jayden, Kayden and Layden that their grandparents belong to Singapores pioneer generation and had no income after retirement

Compute Ingrids income tax payable for the YA 2021.

Show all workings in your answer. Account for all income and deductions in your income tax computations. For example, if an income is not taxable, that income must be included in your income tax computation as $0. Similarly, if an expense or relief is not claimable, that expense or relief must be included in your income tax computation as $0.

Profit and Loss Account Note 1 Rental income Property 1 $36,000 Property 2 $21,600 1 ($86) Less: Expenses Commission expenses Fire insurance premiums Furniture Housing loan interests Internet subscription Maintenance expenses Property taxes Repair costs Utilities 2 3 5 4 5 5 ($3,960) ($207) ($44,789) ($12,710) ($780) ($1,344) ($845) 5 ($9,528) ($690) ($427) ($731) ($192) ($546) 5 ($1,238) Net profit/(loss) ($29,873) $9,400 Notes to profit and loss account: 1. Ingrid gave $1,000 per month to each of her retired parents from the rental income. 2. Expenses were revenue in nature, unless otherwise stated. 3. Expenses were incurred to secure a new tenant for Property 1 after 31 January 2020. 4. Expenses of $10,500 were incurred to buy additional furniture for the new tenant. 5. Expenses included the following, which were incurred during the vacant period of Property 1 from 1 February 2020 to 29 February 2020: Fire insurance premiums of $17; Housing loan interests of $1,059; Internet subscription of $65; and Property taxes of $70. Profit and Loss Account Note 1 Rental income Property 1 $36,000 Property 2 $21,600 1 ($86) Less: Expenses Commission expenses Fire insurance premiums Furniture Housing loan interests Internet subscription Maintenance expenses Property taxes Repair costs Utilities 2 3 5 4 5 5 ($3,960) ($207) ($44,789) ($12,710) ($780) ($1,344) ($845) 5 ($9,528) ($690) ($427) ($731) ($192) ($546) 5 ($1,238) Net profit/(loss) ($29,873) $9,400 Notes to profit and loss account: 1. Ingrid gave $1,000 per month to each of her retired parents from the rental income. 2. Expenses were revenue in nature, unless otherwise stated. 3. Expenses were incurred to secure a new tenant for Property 1 after 31 January 2020. 4. Expenses of $10,500 were incurred to buy additional furniture for the new tenant. 5. Expenses included the following, which were incurred during the vacant period of Property 1 from 1 February 2020 to 29 February 2020: Fire insurance premiums of $17; Housing loan interests of $1,059; Internet subscription of $65; and Property taxes of $70