Puan Maisarah, a Malaysian citizen, purchased a new house on 15 February 2013 from his brother, Encik Naim. The purchase price of the house was RM450,000, but the market value was RM600,000. Other costs incurred by Puan Maisarah for the house she bought from her brother include: RM Legal fees on acquisition Stamp duty on acquisition Renovation cost 2,500 3,700 48,000 On 1 May 2014, Puan Maisarah trans ferred her house to her son Amir. The market value of the house at the time of transfer was RM800,000. Amir then incurred RM17,000 for a new car porch to the house and RM12,000 for repairing of the whole house. On 20 October 2016, Amir sold the house to Multi Care Sdn. Bhd. for RM980,000. He incurred RM13,500 for the agency fees to get the buyer and RM4,500 for legal fees on the sales of the house. Required: Compute the real property gains tax liability (RPGT) on the disposal of Amir's house. (Assume the Amir did not elect for private residence exemption)

Puan Maisarah, a Malaysian citizen, purchased a new house on 15 February 2013 from his brother, Encik Naim. The purchase price of the house was RM450,000, but the market value was RM600,000. Other costs incurred by Puan Maisarah for the house she bought from her brother include: RM Legal fees on acquisition Stamp duty on acquisition Renovation cost 2,500 3,700 48,000 On 1 May 2014, Puan Maisarah trans ferred her house to her son Amir. The market value of the house at the time of transfer was RM800,000. Amir then incurred RM17,000 for a new car porch to the house and RM12,000 for repairing of the whole house. On 20 October 2016, Amir sold the house to Multi Care Sdn. Bhd. for RM980,000. He incurred RM13,500 for the agency fees to get the buyer and RM4,500 for legal fees on the sales of the house. Required: Compute the real property gains tax liability (RPGT) on the disposal of Amir's house. (Assume the Amir did not elect for private residence exemption)

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges

Section: Chapter Questions

Problem 45P

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