Robby's old house was for sale from April 2019 for £745,000 (he bought it on 6 April 2001 for £255,000 and moved in that date), but as he hasn’t had any luck selling it Roddy’s been renting it to a friend since 6 th June 2020. The friend pays him annual rent of £16,200 (paid quarterly in advance) but the market value rent is probably more like £18,000. Before his friend moved in, Roddy repaired the cooker (£230) and installed a new boiler (£1,100). He has a small mortgage loan on the property on which he pays £250 a month interest. explain the impact renting the property will be have on the capital gains Robby will pay when he sell the house.( Robby's Salary is 74000 Employer pension contribution is 11100, Bonus is 20,000
Robby's old house was for sale from April 2019 for £745,000 (he bought it on 6 April 2001 for £255,000 and moved in that date), but as he hasn’t had any luck selling it Roddy’s been renting it to a friend since 6 th June 2020. The friend pays him annual rent of £16,200 (paid quarterly in advance) but the market value rent is probably more like £18,000. Before his friend moved in, Roddy repaired the cooker (£230) and installed a new boiler (£1,100). He has a small mortgage loan on the property on which he pays £250 a month interest. explain the impact renting the property will be have on the capital gains Robby will pay when he sell the house.( Robby's Salary is 74000 Employer pension contribution is 11100, Bonus is 20,000
Chapter3: Income Sources
Section: Chapter Questions
Problem 85P
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Robby's old house was for sale from April 2019 for £745,000 (he bought it on 6 April 2001 for £255,000 and moved in that date), but as he hasn’t had any luck selling it Roddy’s been renting it to a friend since 6 th June 2020. The friend pays him annual rent of £16,200 (paid quarterly in advance) but the market value rent is probably more like £18,000. Before his friend moved in, Roddy repaired the cooker (£230) and installed a new boiler (£1,100). He has a small mortgage loan on the property on which he pays £250 a month interest. explain the impact renting the property will be have on the capital gains Robby will pay when he sell the house.( Robby's Salary is 74000 Employer pension contribution is 11100, Bonus is 20,000
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT