Mr Lum, a retiree, derives his income mostly from rental. Details of his income for the...

 

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Mr Lum, a retiree, derives his income mostly from rental. Details of his income for the year ended 31 December 2023 are: (a) Properties: Mr Lum has two properties, A & B. Property A is rented out to an expatriate and his family while he lives with his wife and children in Property B. The details are: Property A Property B $ $ Rental Income 70,000 Annual Value (AV) 65,000 80,000 Expenses: Property tax 4,000 4,200 Maintenance 2,400 3,000 Repairs 2,000 5,000 Mortgage interest 7,000 Repainting 5,000 Home insurance 1,500 2,500 Refrigerator (new) 2,200 2,200 Total expenses 19,100 21,900 (b) Interest Income: $ Loan interest from a private company 6,000 HSBC, Singapore 2,000 DBS 2,000 OCBC 7,000 Singapore Government Securities (SGS) bonds 3,600 20,600 (c) Dividend Income: $ Malaysia company (net of 25% tax) 55,500 Real estate investment trust (REIT) 15,000 70,500 Calculate his assessable income for YA 2024. Wherever possible, utilize the most favourable tax treatment to minimize his assessable income. Mr Lum, a retiree, derives his income mostly from rental. Details of his income for the year ended 31 December 2023 are: (a) Properties: Mr Lum has two properties, A & B. Property A is rented out to an expatriate and his family while he lives with his wife and children in Property B. The details are: Property A Property B $ $ Rental Income 70,000 Annual Value (AV) 65,000 80,000 Expenses: Property tax 4,000 4,200 Maintenance 2,400 3,000 Repairs 2,000 5,000 Mortgage interest 7,000 Repainting 5,000 Home insurance 1,500 2,500 Refrigerator (new) 2,200 2,200 Total expenses 19,100 21,900 (b) Interest Income: $ Loan interest from a private company 6,000 HSBC, Singapore 2,000 DBS 2,000 OCBC 7,000 Singapore Government Securities (SGS) bonds 3,600 20,600 (c) Dividend Income: $ Malaysia company (net of 25% tax) 55,500 Real estate investment trust (REIT) 15,000 70,500 Calculate his assessable income for YA 2024. Wherever possible, utilize the most favourable tax treatment to minimize his assessable income.