hello
the question above asks to calculate income tax payable by Ronald. when calculating the property business income, they are calculating the premium income 12000-(12000*0.02*(30-1) giving 5040, and they are considering that whole value as income. shouldnt 5040 be divided by 30 years to get income per year and again calculate an amount equivalent to 4 months, since it was leased for 4 months before year end
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question 110 (ronald) bpp kit
And the probelm is what?
My problem is
shouldn't the 5040 be divided by 30 years to get income per year and again calculate an amount equivalent to 4 months, since it was leased for 4 months before year end??
The figure of 5040 is the income from the premium which is taxable on the landlord. It is the tenant that divides this figure by the years to spread the expense
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