In June 2002, John an employee of Bank of America received a loan of $4.0 million to purchase an apartment. The interest on the mortgage loan is 8% and the applicable prescribed rate is 20%. John has paid seven mortgage instalments of $40,000 per month from the 1st of June to 31st December 2006 of which $26000 is interest and $14000 is principal. What is John’s charge to tax (per annum) on his loan for the period December 2002 to December 2004?
In June 2002, John an employee of Bank of America received a loan of $4.0 million to purchase an apartment. The interest on the mortgage loan is 8% and the applicable prescribed rate is 20%. John has paid seven mortgage instalments of $40,000 per month from the 1st of June to 31st December 2006 of which $26000 is interest and $14000 is principal. What is John’s charge to tax (per annum) on his loan for the period December 2002 to December 2004?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter4: Gross Income
Section: Chapter Questions
Problem 6CE
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In June 2002, John an employee of Bank of America received a loan of $4.0 million to purchase an apartment. The interest on the mortgage loan is 8% and the applicable prescribed rate is 20%. John has paid seven mortgage instalments of $40,000 per month from the 1st of June to 31st December 2006 of which $26000 is interest and $14000 is principal. What is John’s charge to tax (per annum) on his loan for the period December 2002 to December 2004?
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