Question
SOLUTION NEEDED Ms. Sim took out a bank loan on 1 January 2018 to buy a residential apartment unit for rental purposes. The apartment obtained
SOLUTION NEEDED
Ms. Sim took out a bank loan on 1 January 2018 to buy a residential apartment unit for rental purposes. The apartment obtained its temporary occupation permit on 1 April 2018 and was rented out on the same day. Sims income and expenses relating to the rental apartment in the year 2018 are as follows:
Sim always calculates her rental income using the most beneficial method.
a. | Gross rental income | 36,000 |
b. | Less: Interest expense on bank loan | (6,000) |
c. | Property maintenance charges | (7,000) |
23,000
Compute Sims tax liability for the year of assessment 2019 with detailed workings? (6 Marks)
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