Advanced Tax Property Income Tutorial Solutions A10
Content
ACFI 2308 Property Income Lecture Example Answer: Sue Net Property Income: Pooled on accruals Rental Income
Property 1
16,000
Prop Proper ertty 2 Re Rental ntal incom ncomee 9/1 9/122 x 20, 20,0000
15,00 5,0000
3/12 x 2,000
6,000
!ra !rants nts 20 20 yea yearr lea lease se
Prem Premiium on s"o s"ort rt leas leasee P # 2$ %n&1'P 25( # %2$ x 9 x 25('
21,000
20,500
)otal income
5*,500
+ess expenses : "olly and exclusi-ely .or usiness o. lettin
Property 1
urnis"ed ∴10$ ) 10$ %16,000 # 400'
1,520
ouncil )ax
400
Repairs
1,600
leanin
500
Redecoration
920
Property 2
1
)utorial olutions Property Income 710
Repairs
3,400
7ents .ees
2,500
+oan interest
4,950
Insurance on in-estment properties %3,000 x 9/12'8%3,200 x 3/12' !ardenin ser-ices
3,050 ,000
2*,60
Net property income
%59,250 # 2*,60' less /. loss 1,300
24,560
Property Income Tutorial Solutions
Tutorial A Answer: Ros a'
Factory Rent %accruals asis' 11/12 x 2,000 "ort lease premium %Note 1'
£
22,000 14,600
,431
Furnished lettings in Cornwall ;ointly oned asset %Note 2' 50$ property income %9,662 x <'
)otal property income on Ros
5,31
'
Harry y/e/ 31.12.10 2
)utorial olutions Property Income 710
)radin expense claimed y =arry Rental expense accrued %1>5>10 # 31>12>10' 4/12 x 2,000 "ort lease premium deduction %Note 1' 930 per year x 4/12
16,000 620
)otal expense y/e 31>12>10
16,620
3
)utorial olutions Property Income 710
Note 1 +ease premium 30( .or 20 years Property Income Premium +ess 2$ %n&1'P 2$ x 19 x 30(
30,000 %11,00'
7ssessale on Ros
14,600
Ros is assessed on t"e rental income o. 14,600 on 1 ?ay 2010> =arry can claim relie. .or rental income paid ut must spread relie. o-er t"e 20 year lease> =arry claims relie. o. 14,600 20 years
930 per annum
Note 2: Cornish Property Rental .or 4 ee@s +ess expenses .or rentin ater rates =eat and +i"t Interest +ess ear and tear alloance 10$ %20,000 # 2,000'
20,000 2,000 1,00 5,405 1,400
7nnual expenses %Aisallo ee@s personal use'
11,005 x 4 52
+ess trips to inspect property %60 x 3'
%10,154'
%140'
9,662
Note: t"is does not Buali.y as =+ as periods o. occupation are too lon>
4
)utorial olutions Property Income 710
Tutorial Answer: Chloe 2010/11
Cuildin ociety Interest 4,000 x 100/40 Ai-idend ,500 x 100/90 Property income %or@in 1' Personal 7lloance
%6,*5'
)ax "are 24,2*5 x 20$ 5,000 x 10$
)ax liaility +ess tax su..ered: Ai-idend Interest
%500' %2,000'
Payment on account
%3,000'
)ax due 31>1>12
5
)utorial olutions Property Income 710
!or"in# 1: $ome
!ross rental income
6,000
Relie. .or rent a room
%,250'
Nett rental assessale
£1,!0
Shop
Rent %accruals' %6250 x ' +ess: Cad det 7ents .ees Insurance Interest No relie. .or extension %apital'
25,000 6,250 1,250 *50 3,250
%11,500'
;oint assets o. "usand and i.e: income split 50:50
13,500
Income assessed on "loe
£",!0
%urnishe& holi&ay lettin#s Rental 7Ds
2*,000 %5,000'
£22,000 Property Income Pool %6,*50 8 22,000 8 1,*50' +ess loss /.
30,500 %5,*50'
2,*50
6
)utorial olutions Property Income 710
Property 1
16,000
Prop Proper ertty 2 Re Rental ntal incom ncomee 9/1 9/122 x 20, 20,0000
15,00 5,0000
3/12 x 2,000
6,000
!ra !rants nts 20 20 yea yearr lea lease se
Prem Premiium on s"o s"ort rt leas leasee P # 2$ %n&1'P 25( # %2$ x 9 x 25('
21,000
20,500
)otal income
5*,500
+ess expenses : "olly and exclusi-ely .or usiness o. lettin
Property 1
urnis"ed ∴10$ ) 10$ %16,000 # 400'
1,520
ouncil )ax
400
Repairs
1,600
leanin
500
Redecoration
920
Property 2
1
)utorial olutions Property Income 710
Repairs
3,400
7ents .ees
2,500
+oan interest
4,950
Insurance on in-estment properties %3,000 x 9/12'8%3,200 x 3/12' !ardenin ser-ices
3,050 ,000
2*,60
Net property income
%59,250 # 2*,60' less /. loss 1,300
24,560
Property Income Tutorial Solutions
Tutorial A Answer: Ros a'
Factory Rent %accruals asis' 11/12 x 2,000 "ort lease premium %Note 1'
£
22,000 14,600
,431
Furnished lettings in Cornwall ;ointly oned asset %Note 2' 50$ property income %9,662 x <'
)otal property income on Ros
5,31
'
Harry y/e/ 31.12.10 2
)utorial olutions Property Income 710
)radin expense claimed y =arry Rental expense accrued %1>5>10 # 31>12>10' 4/12 x 2,000 "ort lease premium deduction %Note 1' 930 per year x 4/12
16,000 620
)otal expense y/e 31>12>10
16,620
3
)utorial olutions Property Income 710
Note 1 +ease premium 30( .or 20 years Property Income Premium +ess 2$ %n&1'P 2$ x 19 x 30(
30,000 %11,00'
7ssessale on Ros
14,600
Ros is assessed on t"e rental income o. 14,600 on 1 ?ay 2010> =arry can claim relie. .or rental income paid ut must spread relie. o-er t"e 20 year lease> =arry claims relie. o. 14,600 20 years
930 per annum
Note 2: Cornish Property Rental .or 4 ee@s +ess expenses .or rentin ater rates =eat and +i"t Interest +ess ear and tear alloance 10$ %20,000 # 2,000'
20,000 2,000 1,00 5,405 1,400
7nnual expenses %Aisallo ee@s personal use'
11,005 x 4 52
+ess trips to inspect property %60 x 3'
%10,154'
%140'
9,662
Note: t"is does not Buali.y as =+ as periods o. occupation are too lon>
4
)utorial olutions Property Income 710
Tutorial Answer: Chloe 2010/11
Cuildin ociety Interest 4,000 x 100/40 Ai-idend ,500 x 100/90 Property income %or@in 1' Personal 7lloance
%6,*5'
)ax "are 24,2*5 x 20$ 5,000 x 10$
)ax liaility +ess tax su..ered: Ai-idend Interest
%500' %2,000'
Payment on account
%3,000'
)ax due 31>1>12
5
)utorial olutions Property Income 710
!or"in# 1: $ome
!ross rental income
6,000
Relie. .or rent a room
%,250'
Nett rental assessale
£1,!0
Shop
Rent %accruals' %6250 x ' +ess: Cad det 7ents .ees Insurance Interest No relie. .or extension %apital'
25,000 6,250 1,250 *50 3,250
%11,500'
;oint assets o. "usand and i.e: income split 50:50
13,500
Income assessed on "loe
£",!0
%urnishe& holi&ay lettin#s Rental 7Ds
2*,000 %5,000'
£22,000 Property Income Pool %6,*50 8 22,000 8 1,*50' +ess loss /.
30,500 %5,*50'
2,*50
6
)utorial olutions Property Income 710
