Personal Tax Recap Quiz 3

Which of these are tax deductible donations? (Hint: There are more than 1 answer)

• Private art

• Cash

• Artefacts

• Shares

• Land and building

Answer explanation

Deductible approved donations for income tax purposes are as follows:

• - Cash

• - Shares

• - Artefacts

• - Public art

• - Land and building

What is the tax deductible amount for a qualifying donation worth $5,000?

• $5,000

• $10,000

• $12,500

• $15,000

Answer explanation

Qualifying donations will have a 250% tax deduction. This scheme is currently in place until 31 December 2026.

250% x $5,000 = $12,500

Select the two (2) general rules for claiming allowable business expenses for an individual.

• Must be related to the generation of one's income

• Must be incurred (i.e. when the legal liability to pay has risen)

• Must be related to one's business (i.e. not personal or private)

• Must be related to any and all purchases for one's business (i.e. including fixed assets)

Answer explanation

Expenses must be incurred. An expense is "incurred" when the legal liability to pay has arisen, regardless of the date of actual payment of the money.

Expenses must be related to your business. Expenses that are personal and private in nature are not allowable as they do not relaye to your business.

A qualifying donor may carry forward unutilised deductions from donations for a maximum of seven (7) years.

• True

• False

Answer explanation

A qualifying donor may carry forward unutilised deductions from donations for a maximum of five (5) years.

Which of these charges are not taxable?

• Alimony paid under a Court Order or Deed of Separation

• Maintenance for child paid under a Maintenance Order or Deed of Separation

• Maintenance for parent paid under the Maintenance of Parents Act

• All of them

Answer explanation

All of the three alimony and maintenance payments are not taxable.

Joe earned rental income of $1,200. What is the deemed rental expense that is pre-filled in the online tax form?

• $100

• $120

• $180

• $220

Answer explanation

The deemed rental expense is 15% of gross rental income.

15% x $1,200 = $180

Ruth earned $70,000 in employment income, and made a $200 donation to a non-IPC charity. She was also retrenched and got $20,000 in compensation loss.

What is the assessable income?

• $70,000

• $89,800

• $90,000

• $90,200

Answer explanation

Only the employment income is taxable. Compensation for loss of employment is not taxable.

Donations made to a non-IPC charity is not tax deductible.

All persons in Singapore are covered by the Employment Act from MOM.

• True

• False

Answer explanation

The Employment Act does not cover the following persons:

• - Seafarer

• - Domestic worker

• - Statutory board employee or civil servant

Which of these is/are tax residents in YA2024? (You may select more than one)

• A Singaporean who went overseas to study for 1 year in 2023

• An Indian national who worked in Singapore for 7 months straight in 2023

• A French national who worked for 185 days between 2021 and 2022, and then 80 days in 2023

• A Singapore PR who gave up his PR status on 1 January 2023

Answer explanation

Refer to the texbook for the criteria to consider tax residency.

Which of these are taxable income? (You may select more than one)

• Outplacement support after getting retrenched

• Interest from deposits with an unlicensed finance company

• Royalties from copyrights in Singapore

• NS Home award after completing NS training cycles

• Dividends paid by co-operatives

Answer explanation

Refer to your textbook for the taxable income items.