Dear Sifu,

If SPA under joint name A & B,
loan under name A only [loan interest for the particular year RM5000 (example) ]
rental agreement under name A only and annual rental collect RM10000 (example)

Case study:

Total deductible rental income let say RM2000 (cukai pintu, Tanah etc) + RM5000 (interest) = RM7000

when filing rental income, If both A & B have file separately, both also need to declare rental income even if rental agreement under name A only (correct me if I am wrong).

Mr A need to declare rental income : ( RM10000 - RM7000 ) / 2 = RM1500

How about Mr B ? :

1) Mr B need to declare ( RM10000 - RM2000 ) / 2 = RM4000 (Because loan only under Mr A) , or
2) Mr B need to declare ( RM10000 - RM7000 ) / 2 = RM1500 ?

Thank in advance

Thank you so much for the advice.

As for the madam leong case you share above, regarding the refinance matter. How if:

Madam Leong refinance again to another bank with loan amount RM1.8 million, how to calculate the loan interest for the rental tax deduction ?

Madam Leong previously refinance from bank A to bank B with loan balance from RM1.0 million to RM1.3million, now with bank C RM1.8million.

Which is correct for loan interest deduction ?:

1) 1.0 mil / 1.8 mil x loan interest from bank C or

2) 1.3 mil / 1.8 mil x loan interest from bank C

Thanks in advance