Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me i will give good rating A. Eliz, a citizen of Malaysia and had acquired a piece of land next to her family

please help me i will give good rating

image text in transcribed

A. Eliz, a citizen of Malaysia and had acquired a piece of land next to her family house at a cost of RM500,000 on 1 April 2017. Legal fees and stamp duty of RM20,000 and RM25,000 were incurred respectively. A house was constructed on the land which embedded with traditional concept and completed at the end of December 2018. The total costs incurred for the house amounted to RM1,050,000. Upon completion, the house has been occupied as guest house for few companies. Eliz received RM55,000 paid to her as a compensation by one of the company due to damages done to her house. In year 2020, the house is vacant because of not being rented by any company due to global pandemic. As such, Eliz decided to sell the house since she is unable to manage it. After few months, Eliz manage to get a potential customer to buy her house and a deposit of RM10,000 was paid to her. Unfortunately, the customer had to cancel the deal because difficulty to get financial assistance during the pandemic period. Eliz's brother, Saiful is making an offer to buy her house for RM1,810,000 although Eliz wish to sell it at RM2,200,000. Eliz decided to accept the offer and sold the house to her brother. In relation to the purchase. Saiful incurred RM15,000 for the stamp duty and RM20,500 for the legal fees. Before it was sold to Saiful, Eliz carried out a renovation on the kitchen area for RM20,000. The house finally transferred to Saiful on 15 December 2020. On 1 May 2021, Saiful transferred the ownership of the house to his wife, Laura. It was given as a 20th anniversary gift. The market value of the house on the date of transfer is RM2,500,000. Saiful and Laura decided to use the house as their living accommodation. Required: i. Calculate the real property gains tax payable (if any) on the transfer of the house from: a. b. Eliz to Saiful on 15 December 2020; and Saiful to Laura on 1 May 2021

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions