Page 80 - Gross Income class slides
P. 80
GROSS INCOME
Special inclusions
(e) Retirement fund lump sum benefits
(g) Lease premiums
(gA) Compensation for imparting knowledge
(h) Leasehold improvements: Included in the Gross Income of the lessor if
there is an agreement obliging the lessee to effect these improvements.
Value = amount stipulated in the lease or fair and reasonable value of
improvements if no amount stipulated. Taxed in year that improvements were
completed.
Relief for the Lessor: Discount the amount over the period of the lease
(usually at a discount rate of 6%) and allow the difference between the full
value and the present value as a deduction.
(i) Fringe benefits: Cash equivalent
80
