Reference no: EM133100206

Question - In early March 2020, Mr Azahar wanted to acquire a new property. In order to finance the acquisition, he decided to sell off his old property that was acquired in 2017. He appointed a registered property agent to sell the old property for him. The agent valued the property between RM1 million to RM1.2 million and Mr Azahar agreed to sell the property within that range.

After advertising the old property (incurring a cost of RM1,200), a prospective buyer responded and paid a deposit of RM12,000; but this was forfeited later when he could not obtain a bank loan to complete the deal. The property was finally sold in August 2020 for RM1,180,000. Some error in the land office documentation led to legal issues regarding the title to the property. This was rectified by the agent's lawyer who charged RM6,000 legal fees. Upon closing the deal, the agent charged RM12,700 for arranging the property valuation and his own brokerage fees of RM35,400.

Mr Azahar acquired the old property in July 2017 for RM985,000 through an agent. He incurred stamp duty of RM23,550, legal fee of RM7,340 and estate agent fee of RM30,000. Upon acquiring the property, he carried out a renovation to the property that cost RM36,000. He had taken a mortgage loan for the acquisition of this old property and up to the time of its disposal had paid RM158,400 as interest to the bank.

What is the chargeable gain to Mr. Azahar if he had gifted the property to his 5-year old daughter in April 2020?