CASE STUDY – Mr & Mrs Anthony Chan Soon Thoong

Anthony is 35 years old. He works as a Compliance Manager with one of the banks here in Singapore.

In calendar year of 2016, he took home an annual base compensation of $84,000 (12 months). As a good employee, he received a total of 5 months’ bonus. To enhance his professional skills, he took relevant courses that he paid for by himself at $8,000.

In addition to his regular job, Anthony was a prolific author who wrote assessment books. His side income for assessment books sales came to $12,500 (no CPF contribution needed). He had a stock portfolio which started in the year 2016 at $105,000, and ended up the year at $185,000. Total dividend received for 2016 was $4,300. Anthony was a non-commissioned officer in a medical team of 3 head counts. He was called for reservist training last year.

Anthony resides at a private condominium. He bought the property at $800,000 two years ago under joint ownership with his wife, and at end of 2016, it was valued at $1,100,000. This year would be considered as the third year of ownership. He is thinking of doing the following:

(a) Re-mortgage his existing condominium, and take the money to invest into a second property, budgeting the investment property at $700,000 (b) Sell off his existing property at valuation price, and invest into a bigger property, budgeting the bigger property at $1,400,000

Anthony’s father is staying with him now.

Anthony is married to Janet, aged 30 years old, for 3 years now. They have one daughter, delivered on Christmas eve in year 2015, which Anthony claimed all related child relief thereafter. Anthony last year tax payable amount was $3,250, but the parenthood tax rebate rendered it to zero.

Janet is currently working as a freelance yoga teacher. Last year, she earned $34,000 for her teaching. She didn’t contribute any CPF as her friends had advised her as a freelancer, there is no need for her to contribute at all. Both her parents are still living. She claimed both of them as dependants for parent relief.

YA 2016 and within the tax jurisdiction of the Republic of Singapore.

Questions are in the Word Document.