QUOTE(David83 @ Mar 6 2019, 01:51 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.pdfRecurring 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.
Thanks for the above info, what about stamping fees we paid? can claim also?
Previously i never had the tenancy agreement stamped.but now to entitle for 50% rentals declaration, stamping is a must
From 2018 i got all agreement stamped, the fees range from RM30-60 and penalties for late stamping RM25 each.
besides the RM400 per year paid to agents( for sourcing new tenants, getting tenancy agreement signed contractors to do repairs, collect rentals etc),
Can i claim as expenses, the stamping fees and late stamping penalties paid by me?
I was told, in order to be able to claim tenancy agreement expenses,
it must be a renewal agreement, ie new tenant, first agreement expenses cant claim.
Any confirmation?This post has been edited by guy3288: Mar 19 2019, 09:19 PM