Julia has property income of £80,000 for the tax year 2021-22. This is before any deduction in respect of £10,000 of interest on loans used to acquire the properties. All of Julia's properties are qualifying furnished holiday lettings. What is Julia's property income and the amount of her finance cost tax reducer for the tax year 2021-227 Amount Property income Finance cost tax reducer £0 £1,000 £2,000 £70,000 £78,000 £80,000

Julia has property income of £80,000 for the tax year 2021-22. This is before any deduction in respect of £10,000 of interest on loans used to acquire the properties. All of Julia's properties are qualifying furnished holiday lettings. What is Julia's property income and the amount of her finance cost tax reducer for the tax year 2021-227 Amount Property income Finance cost tax reducer £0 £1,000 £2,000 £70,000 £78,000 £80,000

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter10: Deductions And Losses: Certain Itemized Deductions

Section: Chapter Questions

Problem 2BCRQ

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Chelsea, who is single, purchases land for investment purposes in 2014 at a cost of 22,000. In 2019, she sells the land for 38,000. Chelseas taxable income without considering the land sale is 100,000. What is the effect of the sale of the land on her taxable income, and what is her tax liability?
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