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Calculate Rental income for tax, Rental income
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TSjucl
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 Apr 1 2025, 02:23 PM, updated 9 months ago
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I have a question regarding calculation for net income of a residential rental property.
which is the correct way calculating the deduction
Income
Rental Condo (Jan-Dec 24) : 20400
Rental House ( Aug to Dec 24): 12,000
Total Income: 32400
Deduction A
Maintenance Condo (Jan to Dec): 6000
Interest on housing loan ( Aug to Dec 24): 10000
Net income: 32400 - (6000+10000)
Deduction B
Maintenance Condo: 6000
Interest on housing loan ( Jan to Dec 24): 24000
Net income: 32400 - (6000+24000)
As my house only started to rent out in Aug, can i consider my housing loan interest from Jan to Dec 24 instead of taking only the interest from Aug 24 to Dec 24
This is because i tried to rent out my house but since no taker, house was empty for 7 months while interest continued to be paid to the bank
Appreciate your advise
Thank you so much!!
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TSjucl
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Apr 1 2025, 03:28 PM
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QUOTE(@Adele @ Apr 1 2025, 02:35 PM) As logic dictates, should be can. Because yr loan is from Jan to Dec, rent income start Aug. So ur income only 5 mths..takkan Jan to Jul dont need to pay loan😂 if got pay loan then interest is calculated and can be deducted. That's what I would do la, don't know about others Thanks. But since my house is empty from 2021 onwards (not staying there anymore and only receiving my rental from my condo) does that mean i can use the interest of my house to count as part of my deduction? |
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TSjucl
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Apr 1 2025, 04:16 PM
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QUOTE(cfa28 @ Apr 1 2025, 03:45 PM) the quick answer is No, cos as there is no business income, all your expenses are normally not allowed. However you may need to engage a tax advisor for this or you can go to Irb office at UTC to ask them Thanks. But declaration of rental and income are count as combine right? Not individual property. Etc Combine income of 2 rental property - combine of 2 deductions. As my condo has been fully paid, i can use the deduction of my house to offset the rental income of my condo as well. EtcA) Condo rental : 12,000 Deduction: 6,000 Net Income: 6,000 B) House rental: 12,000 Deduction: 15,000 Net income: -3,000 Total net income: 3000 |
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TSjucl
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Apr 1 2025, 05:54 PM
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QUOTE(netflix2019 @ Apr 1 2025, 04:53 PM) I used (total rental per yr) - (total interest) - (total cost) then divide by how many name per properties. Kena audit twice already. No problem. But i split calculation per property. According to my accountant friend he said can just lump sum all rental and expenses accross different property So meaning you can combine both income and expenses to declare right rather than calculate individually. This means i can use the deductible from my house expenses offset the condo net rental income. Since both are count as total. |
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