Fred Tang is a property investor. He owns an apartment at Harbord, and a house at Glebe which have been leased to tenants for several years. He also owns land in Shellharbour. Fred received the following amounts in respect of the Harbord and Glebe properties: Receipts Rent Income (net of agent's commission $5,200) $ 64,250 Rent received from the rental bond board, which represented unpaid rent from April 2015 1,640 Water usage component of water rates paid recouped from tenant 1,040 Settlement from a tenant that was held to have breached the terms of the lease. The settlement included $10,400 which was in respect of a garage that had to be completely rebuilt. The balance was unpaid rent 13,400 Deductions Water & Council Rates 3,200 Cleaning of properties after tenants vacated 740 Landscaping at Glebe property 5,000 Building insurance 380 Repairs and Maintenance 4,400 Decline in Value Fixtures and Fitting 1,200 Painting of Harbord property (Fred has owned and leased this property to tenants for many years) 1,800 Travel to inspect properties (2,780 Km travelled in 1,800cc car) ? Strata Levy 2,400 Penalty from council for waste removal breach 400 Bank Charges 140 In addition Fred sold the land at Shellharbour in September 2015 for $420,000. He had purchased the land in April 2010 for $140,000 with the intention of building a house. During the period of ownership Fred incurred the following costs: Legal costs and stamp duty on purchase $ 7,200 Lawn mowing & Maintenance 2,350 Council rates 1,500 Agent's commission on sale 4,400 $ 15,450 Required: Calculate Fred's taxable income for the year ended 30 June 2016.
Fred Tang is a property investor. He owns an apartment at Harbord, and a house at Glebe which have been leased to tenants for several years. He also owns land in Shellharbour. Fred received the following amounts in respect of the Harbord and Glebe properties:
|
Receipts |
|
|
Rent Income (net of agent's commission $5,200) |
$ 64,250 |
|
Rent received from the rental bond board, which represented unpaid rent from April 2015 |
1,640 |
|
Water usage component of water rates paid recouped from tenant |
1,040 |
|
Settlement from a tenant that was held to have breached the terms of the lease. The settlement included $10,400 which was in respect of a garage that had to be completely rebuilt. The balance was unpaid rent |
13,400 |
|
|
|
|
Deductions |
|
|
Water & Council Rates |
3,200 |
|
Cleaning of properties after tenants vacated |
740 |
|
Landscaping at Glebe property |
5,000 |
|
Building insurance |
380 |
|
Repairs and Maintenance |
4,400 |
|
Decline in Value Fixtures and Fitting |
1,200 |
|
Painting of Harbord property (Fred has owned and leased this property to tenants for many years) |
1,800 |
|
Travel to inspect properties (2,780 Km travelled in 1,800cc car) |
? |
|
Strata Levy |
2,400 |
|
Penalty from council for waste removal breach |
400 |
|
Bank Charges |
140 |
In addition Fred sold the land at Shellharbour in September 2015 for $420,000. He had purchased the land in April 2010 for $140,000 with the intention of building a house. During the period of ownership Fred incurred the following costs:
|
Legal costs and stamp duty on purchase |
$ 7,200 |
|
|
Lawn mowing & Maintenance |
2,350 |
|
|
Council rates |
1,500 |
|
|
Agent's commission on sale |
4,400 |
$ 15,450 |
Required:
Calculate Fred's taxable income for the year ended 30 June 2016.
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