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> Rental Income Tax, Rental Income Tax

FD2r
post Sep 26 2013, 01:27 PM

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Hi Forumers.. how about the below, is it done legally..

i buy a house with loan for own stay, then i get my own company to rent back the house from me.

My company gain:
- Save on tax by claiming rental expenses.
eg. 60k rental per year, saves 12k of tax..

I gain:
- I can deduct the sinking, maintenance fees from the rental.
- I can pay less tax vs company tax coz my personal income tax bracket is lower than company tax.
eg: 60k rental income- yearly expenses of 12k~15k, bal 45k pay tax@17%=7.65k;

End up: 12k-7.65k=4.35k(saving on tax)

thanks..
nakedtruth
post Sep 26 2013, 04:58 PM

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TS tumpang thread,

if i rent out a house for rm1k monthly so i have to declare rm12k nett.
is there any form deductible can reduce the declared income?

nakedtruth
post Sep 26 2013, 05:01 PM

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TS tumpang thread,

if i rent out a house for rm1k monthly so i have to declare rm12k nett.
is there any form deductible can reduce the declared income?

nothingz
post Sep 26 2013, 05:39 PM

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QUOTE(FD2r @ Sep 26 2013, 01:27 PM)
Hi Forumers.. how about the below, is it done legally..

i buy a house with loan for own stay, then i get my own company to rent back the house from me.

My company gain:
- Save on tax by claiming rental expenses.
eg. 60k rental per year, saves 12k of tax..

I gain:
- I can deduct the sinking, maintenance fees from the rental.
- I can pay less tax vs company tax coz my personal income tax bracket is lower than company tax.
eg: 60k rental income- yearly expenses of 12k~15k, bal 45k pay tax@17%=7.65k;

End up: 12k-7.65k=4.35k(saving on tax)

thanks..
*
so far i have not seen any tax comp that employer pays the rental for the employee (60k per year), then the maintenance fees on this property can be deductible against the rental benefits (60k) stated in the EA Form

QUOTE(nakedtruth @ Sep 26 2013, 04:58 PM)
TS tumpang thread,

if i rent out a house for rm1k monthly so i have to declare rm12k nett.
is there any form deductible can reduce the declared income?
*
quit rent, assessment, indah water, management fee, maintenance fee provided that all these are paid by you.
penangmee
post Sep 26 2013, 07:54 PM

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QUOTE(FD2r @ Sep 26 2013, 01:27 PM)
Hi Forumers.. how about the below, is it done legally..

i buy a house with loan for own stay, then i get my own company to rent back the house from me.

My company gain:
- Save on tax by claiming rental expenses.
eg. 60k rental per year, saves 12k of tax..

I gain:
- I can deduct the sinking, maintenance fees from the rental.
- I can pay less tax vs company tax coz my personal income tax bracket is lower than company tax.
eg: 60k rental income- yearly expenses of 12k~15k, bal 45k pay tax@17%=7.65k;

End up: 12k-7.65k=4.35k(saving on tax)

thanks..
*
Employer's EPF? 11%= 6600?
ableze_joepardy
post Jul 25 2014, 02:09 PM

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Those who alrd refinance the house, how to calc amount of loan interest deductable for rental? Prorated? How?
Showtime747
post Jul 25 2014, 03:22 PM

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QUOTE(ableze_joepardy @ Jul 25 2014, 02:09 PM)
Those who alrd refinance the house, how to calc amount of loan interest deductable for rental? Prorated? How?
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Have a read on PR 2/2011 example 16 Madam Leong's case

http://www.ctim.org.my/file/news/14/01534_...%20(070211).pdf
guanteik
post Jul 27 2014, 08:19 PM

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QUOTE(nakedtruth @ Sep 26 2013, 04:58 PM)
TS tumpang thread,

if i rent out a house for rm1k monthly so i have to declare rm12k nett.
is there any form deductible can reduce the declared income?
*
There is a way, legally. If you rent out your unit at 1K but your loan, management fee, sinking fund, insurance and etc is >1K, you are actually getting back income from tax.

But, who on earth will rent their property at loss? Perhaps there are, but definitely not the value you mentioned.
truelife
post Apr 2 2015, 09:55 PM

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This post has been edited by truelife: Apr 3 2015, 06:24 AM
night
post Apr 4 2015, 10:41 AM

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QUOTE(guanteik @ Jul 27 2014, 08:19 PM)
There is a way, legally. If you rent out your unit at 1K but your loan, management fee, sinking fund, insurance and etc is >1K, you are actually getting back income from tax.

But, who on earth will rent their property at loss? Perhaps there are, but definitely not the value you mentioned.
*
But if you're getting back your income from tax, means under the rental bracket, we have to put it as (- RM XXX)?

pink.fern.gallery
post Apr 14 2015, 09:21 PM

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Dear all,

Appreciate if someone more experience can enlighten me on this issue.

I have an apartment which is currently vacant and not tenanted, however, it's attached car park was rented out in the past 9 months. The car park is attached to the apartment under 1 strata title.

I am still serving the housing loan for this apartment.

May I ask do I still need to declare this car park rental income?

If yes, is it proper for me to deduct this car park rental income against the housing loan interest, maintenance fees and sinking funds, quit rent, assessment receipts and fire insurance as deductible tax expenses?

Appreciate if you could enlightened me on this. Thank you.

csbong87
post Aug 30 2017, 04:57 PM

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Rent = 1000

Bank loan can be included as expenses ?

ex. (Maintenance Fee, quit rent, Indah water, Repairs, Bank Loan)

BL (500) + MF, QR, IW, Repairs (300) = left 200

The 200 to be taxed only ? or no such thing as include bank loan for tax deduction ?
Ah SiAnG
post Aug 30 2017, 07:52 PM

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QUOTE(csbong87 @ Aug 30 2017, 04:57 PM)
Rent = 1000

Bank loan can be included as expenses ?

ex. (Maintenance Fee, quit rent, Indah water, Repairs, Bank Loan)

BL (500) + MF, QR, IW, Repairs (300) = left 200

The 200 to be taxed only ? or no such thing as include bank loan for tax deduction ?
*
Only interest paid on loan taken to finance the purchase of real property which is rented out is deductible.
Sunny zombie
post Sep 1 2017, 10:13 AM

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QUOTE(csbong87 @ Aug 30 2017, 04:57 PM)
Rent = 1000

Bank loan can be included as expenses ?

ex. (Maintenance Fee, quit rent, Indah water, Repairs, Bank Loan)

BL (500) + MF, QR, IW, Repairs (300) = left 200

The 200 to be taxed only ? or no such thing as include bank loan for tax deduction ?
*
Bank loan is capital in nature, cannot claim as deduction.
If interest is 100, then your statutory rental income is 600
Hansel
post Sep 2 2017, 02:31 PM

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A very hot topic, this thread,... relived here,....
Showtime747
post Sep 2 2017, 02:36 PM

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Google Public Ruling 4/2011. Everything about rental income and tax treatment is there. Even examples are given.

It's a landlord tax bible biggrin.gif
limbie89
post Feb 24 2018, 11:50 AM

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QUOTE(EddyLB @ Sep 24 2013, 05:40 PM)
1. Sum the nett

2. Bank statement

3. Alternatively show invoice and proof of payment
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May i ask, if the nett (rental income - expenditures - interest) is negative, do i still need to file for tax ?

Appreciate some input

thanks
thenoobone
post Feb 27 2018, 01:42 AM

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QUOTE(limbie89 @ Feb 24 2018, 11:50 AM)
May i ask, if the nett (rental income - expenditures - interest) is negative, do i still need to file for tax ?

Appreciate some input

thanks
*
Yes prolly still have to

the best to get a good accountant who always declare for his customer to do it for you .

Keep all resit , anything also can put under cash expenses , i didnt know bout this until recently i have to declare income tax for buying house
seems like i can declare alot so i wont be paying alot of sum towards LHDN !
Showtime747
post Feb 27 2018, 07:51 AM

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QUOTE(thenoobone @ Feb 27 2018, 01:42 AM)
Yes prolly still have to

the best to get a good accountant who always declare for his customer to do it for you .

Keep all resit , anything also can put under cash expenses , i didnt know bout this until recently i have to declare income tax for buying house
seems like i can declare alot so i wont be paying alot of sum towards LHDN !
*
If the rental is non-business source, then you cannot claim losses or carry forward for offset in future years. Also there is no column to fill in negative numbers in e-filing for other income

Not “anything” can put under allowable expenses. Only limited expenses as determined by LHDN. You better be careful, as you may be penalized and have to pay hefty penalty if you simply claim expenses. LHDN is never friendly to people who claim money from them biggrin.gif

Refer to PR4/2011 for reference. http://lampiran1.hasil.gov.my/pdf/pdfam/PR4_2011.pdf
thenoobone
post Feb 27 2018, 04:00 PM

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QUOTE(Showtime747 @ Feb 27 2018, 07:51 AM)
If the rental is non-business source, then you cannot claim losses or carry forward for offset in future years. Also there is no column to fill in negative numbers in e-filing for other income

Not “anything” can put under allowable expenses. Only limited expenses as determined by LHDN. You better be careful, as you may be penalized and have to pay hefty penalty if you simply claim expenses. LHDN is never friendly to people who claim money from them biggrin.gif

Refer to PR4/2011 for reference. http://lampiran1.hasil.gov.my/pdf/pdfam/PR4_2011.pdf
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Really?

wow then i have to discuss back with my account person , cause last time another account person randomly declare without proper documentation end up i have to pay RM22k , but already send letter to revise the account as miscalculation

But from the expenses categories being told to me is something like this

1) buy transport for business
2) staff leisure , food , etc
3) shop equipment renovation , machines etc
4) salary staff / director
5) printing accessories
6) petrol toll touchngo
7) advertisement , rental , bills
and few more

correct rite?

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