URGENT~Taxation Question~how to compute property tax (II)

2007-11-30 6:11 am

"Mr Lee purchased a flat on 1 Jul 2004, and the flat was let to Mr Kwan for a lease of two years from 1 Jul 2004. Mr Kwan would pay a premium of $360,000 at the commencement of the lease, and a monthly rent $20,000 per month.

Mr Kwan paid rent up to 30 Nov, 2005, and he occupied the flat up to 31 May 2006, and disappeared from 1 June 2006. Mr Lee repossessed the flat on 31 July 2006, but he could not let the flat out until 1 April 2007.

更新1:

Why the bad debt for 12/05-03/06 was deductiable at Year of Assessment 2006/2007? IF assessable value is negative, should we consider the 20% deduction?

回答 (1)

Thomas

2007-11-30 6:26 am

✔ 最佳答案

1.Why the bad debt for 12/05-03/06 was deductiable at Year of Assessment 2006/2007?
It is the rule from IRD because the bad debts is occured after the period of assessment that IRD received the tax return from the taxpayer.

2.IF assessable value is negative, should we consider the 20% deduction?
Yes. Because the property tax is paid by the taxpayer on previous years and recover the bad debts in this year. Therefore 20% would be deducted.

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