property by 31 July 2020, and could not be located. Mr Choi deductedthe rental deposit to compensate for the unpaid rental. Since then, theproperty has been left vacant.Mr Choi incurred $25,000 per month as mortgage interest. He also paid$15,000 as a property agency fee for sourcing the tenant.Required:Determine the property tax payable for Mr Choi for the years ofassessment 2019/20 and 2020/21. Ignore provisional property taxand any tax or rates waiver or reduction in your calculations.b Briefly explain the deductibility of bad debt for Mr Choi for thepurpose of property tax computation.Mr Choi would like to re-let the property. Suggest a way in whichMr Choi could reduce the amount of property tax payable bychanging certain term(s) of the lease.d What would your answer to part (a) be if the tenant had stoppedpaying any rent from 1 December 2019 onwards instead of 1 March2020? Mr Choi was born and raised in Hong Kong. In recent years, due tofamily-related reasons, he spends most of his time in Shenzhen. ThoughMr Choi has a Hong Kong Identity Card, he seldom visits Hong Kongas most of his friends and relatives are in mainland China. In July 2019,Mr Choi purchased a residential property in Tai Po for $30,000,000 forinvestment purpose. After a quick renovation, the property was let to MrChan for two years, starting from 1 September 2019. The relevant termsof tenancy agreement are extracted below:monthly rent: $30,000, payable at the beginning of each month;rent-free period of a half-month from 1 September 2019;initial premium of $48,000, payable on signing the lease agreement;rates of $6,000 per quarter, payable by Mr Choi to the government;management fees: $2,000 per month, payable by the landlord; andrental deposit: $60,000 payable on signing the lease agreement.In October 2019, the property underwent certain repairs that cost$5,000; these repair costs were paid by the tenant. The tenant did notdeduct the repair costs from the rental payment.The tenant had financial difficulties and stopped paying any rent from1 March 2020 onwards. Subsequently the tenant had moved out of the

Income tax: The income tax refers to the amount that is paid by the taxpayer to the tax authority of…

a Determine the property tax payable for Mr Choi for the years of assessment 2019/20 and 2020/21. Ignore provisional property tax and any tax or rates waiver or reduction in your calculations. b Briefly explain the deductibility of bad debt for Mr Choi for the purpose of property tax computation. Mr Choi would like to re-let the property. Suggest a way in which Mr Choi could reduce the amount of property tax payable by changing certain term(s) of the lease. d What would your answer to part (a) be if the tenant had stopped paying any rent from 1 December 2019 onwards instead of 1 March 2020?

a Determine the property tax payable for Mr Choi for the years of assessment 2019/20 and 2020/21. Ignore provisional property tax and any tax or rates waiver or reduction in your calculations. b Briefly explain the deductibility of bad debt for Mr Choi for the purpose of property tax computation. Mr Choi would like to re-let the property. Suggest a way in which Mr Choi could reduce the amount of property tax payable by changing certain term(s) of the lease. d What would your answer to part (a) be if the tenant had stopped paying any rent from 1 December 2019 onwards instead of 1 March 2020?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

To better understand the rules for offsetting capital losses and how to treat capital losses carried forward, analyze the following data for an unmarried individual for the period 2016 through 2019. No capital loss carryforwards are included in the figures. Requirement For each year, determine AGI and the capital losses to be carried forward to a later tax year. (If a box is not used in the table leave the box empty; do not enter a zero. Enter loss amounts as a positive number.) 2016 AGI (excluding property transactions) $40,000 STCG 4,000 STCL 9,000 LTCG 6,000 LTCL 5,000 AGI (including property transactions) STCL to be carried forward LTCL to be carried forward 2017 $50,000 5,000 3,000 10,000 21,000 2018 $60,000 7,000 5,000 2,200 1,000…
! Required information [The following information applies to the questions displayed below.] Charles has AGI of $46,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land County real estate tax on the land School district tax on the land City special assessment on the land (new curbs and gutters) State tax on airline tickets (paid on vacation) Local hotel tax (paid during vacation) a. Suppose that Charles holds the land for appreciation. $1,370 1,760 795 Deductible taxes from AGI 714 Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no answer blank. Enter zero if applicable.) 360 224
Which of the following statements regarding the home mortgage interest expense deduction is false for a single taxpayer? Taxpayers may deduct all of the interest paid on up to $1,000,000 of acquisition debt if the debt occurred in January of 2017. Taxpayers may deduct all of the interest paid on up to $750,000 of acquisition debt if the debt occurred in January of 2018. If, in 2021, a taxpayer refinances acquisition debt that was originally incurred in January of 2017, the taxpayer may deduct the interest on up to only $750,000 of the refinanced loan. None of the choices is false.
What would happen if an investor, did not take depreciation deductions for their property and after they sold the property they calimed a 0 dollar depreciation recapture liability on their tax return? Group of answer choices 1) The IRS will sue you for tax evasion 2) The IRS would compute the depreciation that could have been taken and then compute the depreciation recapture tax based on this amount 3) None of these are correct 4) Nothing. Thee IRS does not have any clear rules on this specific issue 5) This makes sense, as it avoids a costly tax
Please Fast Answer and do not give solution in image format
Q. 5 i need help with a-d
Follow US Tax procedure for calculations. posting for second time , previous wrong. if it is wrong , downvote sure and review will be given to the bartleby.
Select one of choices (estate tax, inheritance tax, and gift tax) for the blank. ( ) is a tax on the right to receive property from a decedent. ( ) is a tax levied on the right to transfer property during a taxpayer’s lifetime. ( ) is a tax that imposed on the right to pass property at death. ( ) is imposed on transfers made during the owner’s life time. ( ) is imposed on the transferor at death. ( ) is imposed on the recipient.
You have a choice between a tax deduction of $1,000 or a refundable tax credit of $300. What factors/circumstances will determine which option is the better choice for you?
Which of the following statements is incorrect? Assume that the rental activity is classified as ‘production-of-income.’ If the taxpayer sells the rental property later at a loss, the loss will be treated as a capital loss (i.e., $3,000/$1,500 deduction limit in the current year). An amount that would have been paid in an arm’s-length transaction is considered a reasonable amount as deduction. Payment (except for medical or educational expense) of another person’s obligation does not result in a tax deduction for the payer. Regarding the start-up costs, if the new business is in the same line of business as the existing one and if the new business is not launched, then none of the start-up costs are deductible. Payments for a speeding ticket are nondeductible. HELP
Question: Compute Mr. Tam’s property tax liability for the year of assessment 2019/20 and 2020/21, assuming that he does not elect for personal assessment for the year. Ignore provisional property tax.
Required: Calculate Augustine's income tax liability for the year ended 30 June 2020, if he is treated as carrying on a trade in respect of his motor car activities.