Hi,

I have a question if i own 2 houses, one is rental out the whole unit and another one is rental out 2 rooms where I'm still staying in master room.

Question:

1. I declare the 2nd house room rental income in LHDN.  Can I deduct the rental taxable income with maintenance, bank loan interest and etc?  If yes, what is the calculation would be? 100% of the eligible expenses or partially?

2. Can I combine the expenses and income for both houses?

Thanks

Yes, since first house have higher interest rate, I lump all my extra money to the first house but indirectly the taxible rental income will become higher.
2nd house will have negative rental income and if I can put both together and balance it up, it can reduce my tax.
So is it valid move?

Yes, you are totally right :-)

For the 2nd house (room rental out), could I include the whole bank loan interest or partially based on rented size? Do you know how is the calculation would be?