I read before that if the property is used to generate rental income, the interest portion of the mortgage repayment can be claimed as tax deduction. I am a bit confused by the statement above.
My current interpretation of the statement is:
Let's say my monthly mortgage repayment is RM1000, and out of the RM1000, RM700 is interest.
I can deduct RM700 from my rental income as it is to pay the mortgage interest without paying tax for the RM700.
However, I will need to pay tax for the remaining rental income, the amount after deducted the RM700.
I appreciate further clarification on this matter. Thank you for all your advices
Rental income, interest and tax deduction question, How they are all related?