Before understanding how to calculate rent arrears, let us understand what rental arrears means. Rent arrears are past-due rent amounts that you eventually get after a set amount of time. This might be unpaid rent from the current tenant that you were unable to claim as unrealised rent in the past, or it could be rent that was due from a former tenant.
How to Calculate Rent Arrears?
This can be computed using the formula
RA=AR/365∗D.
Here, RA stands for rent arrears
The total annual rent is represented by AR, while the number of days past due is shown by D.
Divide the entire annual rent by 365 to find the rent arrears, then multiply the result by the number of days past due.
Do I have to pay tax on arrears of rent?Regardless of when the rent was originally due or who owned the property at the time, you will be required to pay tax on any arrears of rent in the year that you receive them. Nonetheless, you are qualified to get a standard deduction equal to 30% of your rent arrears.
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How to Calculate Rent Arrears?
Rahul
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2024-01-30T11:11:49+00:00 2024-01-30T11:17:29+00:00Comment
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