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Unformatted text preview: 0% ­ s.5(1A)(b)(ii) Unit 2 – Property Tax Building Management Fees, repairs, agent commission, mortgage loan interest, Not allowable deduction no matter paid by owner or tenant according to tenancy agreement Flat rate 20% statutory deduction supposed to cover all [Mortgage loan interest expenses deductible under Personal Assessment] Unit 2 – Property Tax Unit Rent + Premium payable A Add: Bad Debt Recovered B Less: Bad Debt (C) Assessable Value (AV) D Less: Rates agreed & paid by landlord (E) F Less: 20% statutory deduction (20% x F) (G) Net Assessable Value (NAV) 遗 遗 遗 遗 H == Tax payable at standard rate on NAV (H) J Unit 2 – Property Tax Unit Sample Question Ms Chan purchased a flat as an investment property for rental income on 1 July 2007. The purchase price was $3 million. Ms Chan rented the flat to Ms Kok for a lease of 2 years. The lease started from 1 July 2007. As part of the lease, Ms Kok paid to Ms Chan a premium of $360,000 at the start of the lease. Monthly rent was agreed at $10,000. Rates of $1,500 per quarter and building management fee of $500 per month were paid by Ms. Chan. Ms Kok paid rent up to 30 November 2008. However, she occupied the flat up to 30 June 2009 and moved out on same date. Ms Chan managed to repossess...
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