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 Calculate Rental income for tax, Rental income

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yhtan
post Apr 3 2025, 07:22 PM

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From: lolyat


QUOTE(jucl @ Apr 1 2025, 02:23 PM)
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!!
*
if non-business source (Section 4d) then apply A, if business source (section 4a) then apply B

the deduction on maintenance have to pro-rate from Aug-Dec'24, only the month where rental received only deductible against rental income.

 

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