Lee was a businessman in Suva. He has some commercial properties in the heart of...
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Lee was a businessman in Suva. He has some commercial properties in the heart of Suva which have a total worth of $6,000,000. He was survived by one son and one daughter. As per his last will, upon his death, all the property will be under a trust named Lee &Family Trust, managed by his son Lin. He will have a share of 30% in while other daughter, Lina will be having remaining shares. During the year 2019, the following are the financial transactions:
Commercial properties are rented out which generated $150,000 rent during the year
Form the business they earned $130,000
They have investment in Pacific Company worth $145,000 and return is 3.5% per annum
For the rented property, costs incurred were:
Insurance $4,500
Depreciation $13,000
Local Council rate $3,000
Security of the premises $6,000
Required:
Calculate Income Tax of beneficiary Lin and Lina for the financial year ended on 31st December 2020.
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