I'm currently doing my summer semester. And the subject that i am currently undertaking is Tax Law.
This is a very interesting subject to me. Something that interest me is the area of renting out property and how it is being taxed on.
I came across this point in my lecture notes that states how some rent money received are not consider as rental income and it will not be taxed on. For example, "Homestay" and when "Owner of the residence permits persons to share it on the basis that all the occupants, including the owner, bear an appropriate proportion of the cost actually incurred like electricity, etc". Then later in the lecture, i came across Capital Gain Tax. And i got a bit confuse, cause it mention that we will be taxed on the property that we sold the proportion which we used it as a form of income. Cause in one of the tutorial questions, there is a question about a man who wanted to sell the property that he had been staying. That property had been used for several purposes and one of them is renting one of the rooms to a student. The answer is that it is a rental income and will have CGT implication.
Strange right? In the earlier lecture it mention that it is not rental income and will not be accessable. Then later, it mention that when you sold the property, it will be assessable as it was consider as a rental income. Or is it because the tutorial question didn't mention that the owner actually did share the appropriate proportion of the cost that incurred like electricity? That's why it falls under rental income. Did i actually got this all wrong? Can someone who read this blog please advise.
This is a very interesting subject to me. Something that interest me is the area of renting out property and how it is being taxed on.
I came across this point in my lecture notes that states how some rent money received are not consider as rental income and it will not be taxed on. For example, "Homestay" and when "Owner of the residence permits persons to share it on the basis that all the occupants, including the owner, bear an appropriate proportion of the cost actually incurred like electricity, etc". Then later in the lecture, i came across Capital Gain Tax. And i got a bit confuse, cause it mention that we will be taxed on the property that we sold the proportion which we used it as a form of income. Cause in one of the tutorial questions, there is a question about a man who wanted to sell the property that he had been staying. That property had been used for several purposes and one of them is renting one of the rooms to a student. The answer is that it is a rental income and will have CGT implication.
Strange right? In the earlier lecture it mention that it is not rental income and will not be accessable. Then later, it mention that when you sold the property, it will be assessable as it was consider as a rental income. Or is it because the tutorial question didn't mention that the owner actually did share the appropriate proportion of the cost that incurred like electricity? That's why it falls under rental income. Did i actually got this all wrong? Can someone who read this blog please advise.
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