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 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)
Rental Income Tax, Rental Income Tax