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This is freehold warehouse that is let out unfurnished. The property was let from 6 April 18 to 31 Jan 19 at monthly rent of 580. On 31 Jan 18 tenent left owing 3 months rent. leticia recovered 2 months of outstanding rent by retaining tenants security deposit but was unable to recover the balance.
Calculate rental income for leticia for 18/19
Sir here in solution they have multiplied 580 by 9 in order to calculate rental income, I dont understand why they have multiplied by 9? Also as we know that for individual basis of assesment of property income is cash basis, and the fiscal year for cash is 6 april 18 to 5 april 19
I will need to see the exact wording of the question and the answer to be able to assist you with this
Leticia owns the following property which is let out. The following info relates to tax year 18/19
This is freehold warehouse that is let out unfurnished. The property was let from 6 April 18 to 31 Jan 19 at monthly rent of 580. On 31 Jan 19 tenent left owing 3 months rent. leticia recovered 2 months of outstanding rent by retaining tenants security deposit but was unable to recover the balance
On 1 march 19 a new tenant paid leticia security deposit of 1200 being 2 months rent, although new tenancy did not commence until 15 April 19
Other expenditure for tax year 18/19 amounted to 3000 and this is all allowable
Calculate property income for 18/19
Sir here in solution they have multiplied 580 by 9 in order to calculate rental income, I dont understand why they have multiplied by 9? Also as we know that for individual basis of assesment of property income is cash basis, and the fiscal year for cash is 6 april 18 to 5 april 19
Calculate property income
In the entire solution what I don’t understand is that why they have multiplied 580 by 9 in order to calculate rental income? I mean why 9 months?
In the absence of the question stating the date when the rents were received the 9 months would be based on:
10 months were due to 31 January but 3 months were unpaid = 7 months received plus 2 months taken as rent from security deposit = 9 monthsOk , but still 1 thing which confuses me in property income is that as we know the basis of assesment for individual is cash basis by default. And the actual fiscal year is from 6 april 18 to 5 april 19, so here as you said that 10 months were due to 31 January, but according to the actual fiscal year , should not the 10 month be due to 6 Feb?
As I said in my previous reply – “In the absence of the question stating the date when the rents were received”.
The 31 January or 6 February are irrelevant anyway as the last 3 months of rent were NOT received!
Ok , Sir if generally if there is a freehold warehouse that is let out unfurnished and the property was let from 6 April 18 to 31 Jan 19 at monthly rent of 580. Only this much question
So now in order to calculate rental income for 18/19 on cash basis, we will consider April as an entire month? Won’t we apportion April (i,e 25/30 )?
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