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Ask the Tutor ACCA FR
Income Tax on Property Revaluation
Do you not think that the bit that you missed out could have been material?
How about this extract from the question ... "No depreciation had been charged on the sales office and any impairment loss is allowable for tax purposes."
We're not facing any tax implications on a revaluation increase for current income tax - we would be facing a deferred tax tax liability increase but no affect on income tax
But the question specifically tells us that an impairment is allowable for tax purposes
OK?
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