Arrears of Rent Taxed as Income in Year of Receipt with 30% Deduction, Regardless of Property Ownership
The tax treatment of arrears of rent involves charging the amount received as income in the year it is received, after deducting 30% of such arrears. This applies regardless of whether the taxpayer owns the property in the year of receipt. The arrears of rent, not previously taxed, are subject to taxation under these conditions.
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