Victoria has the following property income in 2022/23. i) She let a house to tenants throughout...
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Victoria has the following property income in 2022/23. i) She let a house to tenants throughout the year at a monthly rate of £800. She incurred the following expenditure during the year Insurance Cleaning Boiler service Replacement of windows with improved widows Letting agent fees i. £ 600 200 350 5,250 900 ii) She let out another house for part of the year. It was first let to tenants from 1 June 2022 at a monthly rent of £950. She paid £250 to advertise the property before it was let. During the year she paid £400 insurance in respect of the property. iii) On 6 April 2022 she let out a leasehold office building. The tenant paid £12,000 for the grant of a 12-year lease, in addition to annual rental of £18,000. During the year Victoria paid £900 insurance in respect of the building. iv) Throughout the year she let out a room in the house she lives in for £9.600 per annum. The expenses relating to the room in the year were £1,200. Required: a) Calculate Victoria's property business profits for the year 2022/23. 18 marks b) Explain the rules that determine whether a property qualifies as a furnished holiday let for income tax purposes. 7 marks (Total marks for question 6: 25 marks) Victoria has the following property income in 2022/23. i) She let a house to tenants throughout the year at a monthly rate of £800. She incurred the following expenditure during the year Insurance Cleaning Boiler service Replacement of windows with improved widows Letting agent fees i. £ 600 200 350 5,250 900 ii) She let out another house for part of the year. It was first let to tenants from 1 June 2022 at a monthly rent of £950. She paid £250 to advertise the property before it was let. During the year she paid £400 insurance in respect of the property. iii) On 6 April 2022 she let out a leasehold office building. The tenant paid £12,000 for the grant of a 12-year lease, in addition to annual rental of £18,000. During the year Victoria paid £900 insurance in respect of the building. iv) Throughout the year she let out a room in the house she lives in for £9.600 per annum. The expenses relating to the room in the year were £1,200. Required: a) Calculate Victoria's property business profits for the year 2022/23. 18 marks b) Explain the rules that determine whether a property qualifies as a furnished holiday let for income tax purposes. 7 marks (Total marks for question 6: 25 marks)
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Tenant or rental income can be a great way to make safe business profits However various expenses come along in due course of time Its essential to ac... View the full answer
Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
Posted Date:
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