Q5: John purchased a house in Tropicana from the developer on 4 July 2017 for RM245,000. The certificate of fitness was obtained on 20 August 2017. John financed the purchase of the house with a loan from Kerala Bank. In December 2018 John sold the house for RM500,000. The costs he incurred on the property were as follows:

RM

Stamp duty on acquisition 3,000

Interest on the loan from Kerala Bank 50,000

Valuation fee for the sale 6,000

Advertisement for the sale 2,000

Real estate agent's fee on the sale4,000

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65,000

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Required:

Compute John's income subject to real property gains tax (RPGT).

Q6: Explain the treatment for RPGT purposes of a loss arising on the sale of a property.

Q7: Define the following within the context of RPGT Act 1976.

(i)Chargeable assets

(ii)Real property

(iii)Acquisition price

(iv)Chargeable Gains

Q8: Discuss circumstances in which a person is not liable to RPGT.