Mrs. Lam owned a flat in City Garden and rented out to Mr. Mason and his family

Fantastic news! We've Found the answer you've been seeking!

Question:

Mrs. Lam owned a flat in City Garden and rented out to Mr. Mason and his family under the following terms:

Lease period: 18 months from 1 October 2018

Monthly rent: $6,800 payable at the beginning of each month

Initial premium: $54,000

Rental deposit: $13,600 payable on 1 October 2018 and refundable upon completion of the lease

Rates: $2000 per quarter payable by the tenant

Management fee: $980 per month payable per quarter by the tenant.

Required:

Compute the property tax liabilities over the lease period.

Same information as in Q4. From 1 February 2019 onwards, Mr. Mason failed to pay the rent and left the property on 31 March 2019. After searching Mr. Mason for a few months, Mrs. Lam still could not find Mr. Mason. The assessor agreed that the outstanding rent be treated as irrecoverable in July 2019. Subsequently, Mr. Mason approached Mrs. Lam and agreed that the rental deposit paid at the start of the lease will be used to offset the outstanding rent. Such agreement was reached in September 2020. From 1 October 2019, Mrs. Lam rented the property out again at monthly rent of $7,500. The new tenant was still responsible to pay the rates and the management fee. Compute the property tax liabilities for the years of assessment 2018/19 and 2019/20.