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- June 10, 2020 at 5:55 am
sir my understanding from the study text is that, that any premium received by the grantor is netted of by- premium*2% *(n-1)and the remaining is assessable for tax as property income in that year. So this is the case for year one only, right?? or does this thing has to be done each year till the lease lasts?
And if the latter is the case then why does the grantor has to pay income tax on the same premium (which he received just once) each year until finally it exhausts?
June 10, 2020 at 5:02 pmLook more carefully at the notes to differentiate between the treatment of the lessor and the lessee.
As the study notes show a single assessment arises for the lessor on the taxable part of the premium when received, whereas the lessee will be allowed an annual trading profit deduction in each year in which the property is used within their trade
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