Leasing

Besides the Income Tax Act 1967, ________ is enforced in leasing transaction.

• Leasing Regulation 1968

• Income Tax Leasing Regulation 1986

• Leasing Income Regulation 1986

• Leasing Income Ruling 1986

A lease is a contract that involve two parties.

• True

• False

Seller : Buyer

• Lessee : Lessor

• Seller : Borrower

• Lessor : Lessee

• Owner : Purchaser

The period for which the lessee has contracted to lease an asset is known as ____.

• lease term

• lease agreement

• lease contract

There are two types of lease contract - ____ and ____.

• non-deemed sale ; hire purchase

• deemed sale ; non-deemed sale

• deemed sale ; sale agreement

Under non-deemed sale, lessee is the owner of asset.

• True

• False

Under deemed sale agreement, lessor is entitle to claim capital allowance.

• True

• False

Under deemed sale, gross income of lessor is the ____.

• capital payment

• lease rental

• interest received

Income from leasing business is similar to income from hire purchase transaction.

• True

• False

Common expenses can be deducted from gross income of leasing business.

• True

• False