Property Tax Q

[匿名]

2010-05-16 2:24 am

Mr A rented a flat to Mr B at $28,000 per month.

However, due to poor economic enviorment, Mr B default to pay rent payments from 1 January 2008. The rates paid by Mr A were $20,000 per annum.

On 1 May 2009, MR B was put into liquidation and the flat premisese were left vacant for the remainer year of assessment 2009/10.

i want to ask the treatment for non-payment of rent from 1 Jan 2008 to 31 Mar 2008 for the yr of assessment ? will it be treated as a bad debt in computing the property tax for the year 2008/09 ?

更新1:

when calcaluting the 2008/09 property tax , shall I calcuted as follows :- Rental income ($28,000 x 12 mth) Less : Irrecovable rent for the year 2007/08 ($28,000 x 15 mth) Then the assessable income is NIL and there is no property tax for 2008/09.

回答 (1)

用戶2576

2010-05-16 5:02 am

✔ 最佳答案

Irrecoverable rent can be excluded from tax charge in the year in which it
became irrecoverable. Any amount subsequently recovered is assessable to tax as income in the year of recovery. Hence, the non-payment of the rent from January to March 2009 will not be regarded as rental income in 2008/09..
If the owner A is responsible for paying rates, rates paid can be deducted before allowing the 20% deduction of repairing and outgoings. As B becomes liquidated, there will be no additional assessment for 2008/09 and, of course, no taxable income for 2009/10.

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