Gross rental = 1800 x 3 months.

Less

Rental expense =

1. Interest portion instalment for 3 months Oct to Dec
2. Quit rent ÷ 12 x 3 months
3. Assessment ÷ 12 x 3 months
4. Agency fee ÷ 12 x 3 months (Bal cf next year)
5. Others ÷ 12 x 3 months

Prev gomen announced rental income for 2018 and 2019 only 50% subject to tax, trying to keep tab on landlords by stamping agreements.
i spent few hundreds RM on it. Is the 50% rental income tax on?

Anyone knows where to read more about it?
rental RM1000 a month just declare RM500 for tax.....?

Post #58

URL: https://kickmeaway.blogspot.com/2018/11/how...e-for-lhdn.html

Noted Thanks

Dear Sifu

Case 1 :
SPA joint name, A & B & C
Loan name under A & B & C
Tenancy Agreement under B only
Monthly rental deposit to B's bank account

Q1. According to Showtime747's reply, each should declare income - expenses divided by three.
Q2. Is it possible that only B declare 100% of the rental income, A & C don't declare.

Case 2.
SPA name, D
Loan settled
Tenancy Agreement under E only
Monthly rental deposit to E only (As D want to give E all of this rental income)

Q3. Can E file rental income only and D do not file?

Note:
My friend asked in LHDN, they counter's staffs (they looks not that sure) said the name that appeared in tenancy agreement should declare.
Q4. Or is it doesn't matter who declare as long as the "rental income" is fully declared?

Looked around 12/2018 but cant find answer
http://lampiran1.hasil.gov.my/pdf/pdfam/PR_12_2018.pdf

Thanks sifu, appreciate your reply!

Hi Sifu,

I know it's small amount for the IWK bill, Can we deduct IWK bill from the rental income of the tax return.

TIA

Yes.
But shouldn't that bear or payable by your tenant?

I think sewerage charges should be treated like other utilities such as water, electricity and telephone charges, so it should be the tenant that has to pay.

Hi,

If declare rental income thru efiling do we need to provide and calculation or evidence? Is it under pendapatan berkanun dividen dan sewa? Just fill in the amount based on own calcation will do?

Just keep your calculation and evidence in the event of audit.
Yes. Under that section.

Thank you... wonder will it trigger lhdn fot audit if suddenly declare rental income.

Not sure.
Just be ready since it's out from your normal filing trend.

Some posts back....a forumer mentioned e stamping....thus i feel the audit will come at some time

Hi Sifu,

I've a appt in KL and can I claim the tax rebate for the agent fee for getting a new tenant and also appt refurbish expenses during vacant time.

I've tenant A shifted out in 31 Dec 2017 and my agent managed to get new current tenant B onboard from 1 June 2018.

Tenant A - Mar 2016 to Dec 2017
Vacant period - Jan 2018-May 2018
Tenant B - Jun 2018 - Now

Can I claim the tax rebate on the followings,

- 1 month Agent fee to get new tenants in Jun 2018
- Contractor Re-paint who appt - RM1200 in March - May2018
- Replacement of water heater due to leaking - RM900 - Feb 2018


TIA.

This post has been edited by utellme: Mar 6 2019, 01:19 PM

Read Page 18 onwards for Expense Relating to Income of Letting of Real Property

URL: http://lampiran1.hasil.gov.my/pdf/pdfam/PR_12_2018.pdf

Recurring expenses
(a) Assessment and quit rent
Annual assessment paid to the local authority and quit rent paid to the land office.
(b) Interest on loan
Interest paid on loan taken to finance the purchase of real property which is rented out.
© Fire insurance premium
Fire insurance premium paid in relation to fire insurance policy taken on the real property which is rented out.
(d) Expense on rent collection
Rent collection fee and legal expense incurred to enforce rent collection.
(e) Expense on rent renewal
Expense incurred to renew tenancy or to change tenant.
(f) Expense on repair
Expense on ordinary repair to maintain the real property in its existing state.

Initial expenses
Initial expense is not allowed a deduction from income of letting of real property assessed under paragraph 4(a) or paragraph 4(d) of the ITA since that expense is incurred to create a source of rental income and not incurred in the production of rental income. Examples of such expense are cost to obtain the first tenant such as advertising cost, legal cost to prepare rental agreement, stamp duty and commission for real property agent.

Expenses during a period the real property is not rented out
Expenses incurred in relation to a real property during a period it is not rented out are not allowable in calculating the adjusted income from the letting of the real property. However, if the period the real property is not rented out occurs after it has been let out and it is clear that it is ready to be let out, then expenses during that period are allowable subject to subsections 33(1) and 39(1) of the ITA.

This post has been edited by David83: Mar 6 2019, 01:51 PM

I been tax audit twice, no problem to - IWK as expenses.

It is important to note that the expenses are deductible in the year they were incurred, even though you have not made any payment for them during the year.
Having said that, do ensure that your obligations as a landlord towards the expenses which are to be borne by you, are clearly spelt out in the tenancy agreement to avoid any disputes by the Inland Revenue Board (IRB) against your claims for the said expenses.


http://malaysiantaxation101.com/2013/01/ex...-real-property/

Thank you for the details feedback. That means beside property maintenance fee, cukai ointu & cukai tanah and insurance, I can claim the tax rebate for all the 3 items as mentioned. agent fee, repair expenses. plus 50% discount from rental income.

Hi
first time do rental income e-filling, don't see any section for rental tax exemption. So the declare rental income is Rental - Bank Interest - Maintenance fees etc= net?

while waiting for responses,
you may want to read posts from previous page
i think there are some links provided by fellow forummers that maybe relevant.