CAF-2 · Chapter 6 · Question 4 of 15
Two brothers jointly own a commercial plaza. Their respective shares in the property are NOT definite and ascertainable. For income tax purposes, how will the rental income from this property be assessed?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) B) The property will be considered as being jointly owned by an Association of Persons (AOP) and taxed as per the principles of an AOP.
Explanation
Where a property is owned by two or more persons and their respective shares are not definite and ascertainable, the property will be considered as being jointly owned by an AOP, and the taxable income will be computed under AOP taxation principles.
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