Illustrate how the couple should go about generating their desired rental income stream whilst minimising duties payable
Fantastic news! We've Found the answer you've been seeking!
Question:
Illustrate how the couple should go about generating their desired rental income stream whilst minimising duties payable and transaction costs. Show the duties that would be payable in this manoeuvre.
Transcribed Image Text:
All values are denominated in SGD, and each individual's tax return is filed separately. YA 2020 Details: Husband John Clarkson (Singapore PR) 47 years old 2019 OW = $144,000 2019 AW = $44,000 Wife Ariel Goh (Singaporean) 37 years old 2019 OW $90,000 2019 AW = $32,000 = Occupation: Bank IT Project Manager Occupation: Bank Relationship Manager John has a track record of working in investment banks, both in London and in Singapore. 10 years ago, he met Ariel at his workplace and fell in love. Thus, he decided to get married and to settle down in sunny Singapore instead of returning to London. They have 2 lovely daughters, Annabelle and Eunice, aged 7 and 4, respectively. Currently, they are staying in a 5-room semi-detached property in central Singapore. It was purchased 6 years ago under joint tenancy for $2.3 million and the market value of the property is now worth approximately $3 million. There is an outstanding mortgage of $1.3 million on the property and they have mortgage insurance in place for this outstanding liability. All values are denominated in SGD, and each individual's tax return is filed separately. YA 2020 Details: Husband John Clarkson (Singapore PR) 47 years old 2019 OW = $144,000 2019 AW = $44,000 Wife Ariel Goh (Singaporean) 37 years old 2019 OW $90,000 2019 AW = $32,000 = Occupation: Bank IT Project Manager Occupation: Bank Relationship Manager John has a track record of working in investment banks, both in London and in Singapore. 10 years ago, he met Ariel at his workplace and fell in love. Thus, he decided to get married and to settle down in sunny Singapore instead of returning to London. They have 2 lovely daughters, Annabelle and Eunice, aged 7 and 4, respectively. Currently, they are staying in a 5-room semi-detached property in central Singapore. It was purchased 6 years ago under joint tenancy for $2.3 million and the market value of the property is now worth approximately $3 million. There is an outstanding mortgage of $1.3 million on the property and they have mortgage insurance in place for this outstanding liability.
Expert Answer:
Answer rating: 100% (QA)
If the couple sells their property and purchases two condominium units they will be liable for stamp duty on the purchase of the units The stamp duty ... View the full answer
Related Book For
Visualizing Environmental Science
ISBN: 978-1119147527
4th edition
Authors: Linda R. Berg, David M. Hassenzahl, Mary Catherine Hager
Posted Date:
Students also viewed these general management questions
-
Identify some key financial ratios that would be important in evaluating a banks strategy.
-
Identify financial ratios that would be helpful in assessing a governments budgetary solvency.
-
List several important data fields that would be found in a database design for accounts receivable.
-
Assume that the average talk time on an Apple iPhone is 20 hours and that this time follows the exponential probability distribution. What is the probability that a randomly selected iPhone will...
-
In terms of Newton's first law (the law of inertia), how does a car headrest help to guard against whiplash in a rear-end collision?
-
A Henriques has the following purchases and sales for May 20X6: Required: (a) Write up the sales and purchases day books. (b) Post the items to the personal accounts. (c) Post the totals of the day...
-
Uniform horizontal sheets of water of 3-mm thickness issue from the slits on the rotating manifold shown in Fig. P12.3. The velocity relative to the arm is a constant \(3 \mathrm{~m} / \mathrm{s}\)...
-
Trail Runner USA guarantees tires against defects for five years or 55,000 miles, whichever comes first. Suppose Trail Runner USA can expect warranty costs during the five-year period to add up to 5%...
-
In the last column for NYTD,figure out how NYT'sDNA elements will impact their performance. What DNA elements should NYTD keep, what should it jettison, and what should it change? A element...
-
The price of Cilantro, Inc., stock will be either $60 or $80 at the end of the year. Call options are available with one year to expiration. T-bills currently yield 6 percent. a. Suppose the current...
-
Suppose a young researcher would like to analyze the relationship between Gross Domestic Product (GDP), foreign direct investment (FDI), and trade openness (OPEN), where GDP is theoretically modeled...
-
You borrow money to buy shares of a public company to hold in a non-registered investment account. what is the interest expense tax deductible?
-
Respond with an explanation for all questions. 1. What do you think of the proposition that if sustainable environmental practices make business sense that there would be no need for government...
-
Denise Frankel is preparing a budget that includes non-patient revenues. Since the hospital where she works is nonprofit, she is including donor revenues. What type of budget is Denise preparing?
-
Accounting Explain how you will ensure consistent accountability and transparency in the budget process. Explain how the budget will be audited or reviewed and the review process. Explain how you...
-
Perform three separate ABC Classification Analyses using the following criteria: total volume sold for the year, total revenue for the year, and total profit for the year. Classify the inventory...
-
Smith buys a perpetuity, which pays $8000 every 3 years with the first payment 5 years from now. Each payment is 3% more than the prior payment. Assume i = 0.06. Calculate the price (present value)...
-
Thalina Mineral Works is one of the worlds leading producers of cultured pearls. The companys condensed statement of cash flows for the years 20182020 follows. Required Comment on Thalina Mineral...
-
Your throat feels scratchy, and you think you're coming down with a cold. You take a couple of vitamin C pills and feel better. You conclude that vitamin C helps prevent colds. Is your conclusion...
-
Ecologists investigating interactions of two species at a study site first counted individuals of Species A and then removed all Species B individuals. Six months later, the ecologists again counted...
-
How is stabilizing climate related to energy use? Deforestation?
-
Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 designer lamps. Its simple costing system uses a single indirect-cost pool and allocates costs...
-
Amherst Metal Works produces two types of metal lamps. Amherst manufactures 20,000 basic lamps and 5,000 designer lamps. Its activity-based costing system uses two indirect-cost pools. One cost pool...
-
How do managers refine a costing system?
Study smarter with the SolutionInn App