Did any of you guys declare rented property in income tax?
and will LHDN check if i own more then 1 property?

When you send your tenancy agreement to tax office for stamping you have to fill in a form with details of your i/c and tax file number.

u wanna play play with IRB fellas? think again....

unless u don't stamp ur tenancy agreement, if not, u have filed ur income dy..

I have been a good boy and been declaring even when there isn't a tenancy agreement.

Ok. guess need to be good boy
So if I were to declare, can i declare expenses on property?
eg. insurance, painting, maintenance, etc etc

The biggest portion of the expenses shall be the interest portion of your loan.

This post has been edited by cblau: Jun 28 2008, 12:11 PM

Yes, you can declare those expenses, including indah water, cukai tanah, cukai pintu.

I don't believe you can declare the interest on your loans though.

i tot u can only declare those expenses on property ( repair , fees, insurance, loan interest .....) if u own 4 or more property as rental income ?

The 4 units criteria i think is more related to whether the income to be treated as business source or non business source. U can download the ruling 1/2004 to understand more.

http://www.hasil.org.my/english/eng_NO4_5_2.asp

This post has been edited by cblau: Jun 28 2008, 01:51 PM

Meaning not much can be done on tax reduction for a single property?

http://biz.thestar.com.my/news/story.asp?f...88&sec=business

#

Rental income

Rental income is required to be reported in the tax return and is normally treated as an investment income.

Expenses which are allowable against the rental income are:

# Quit rent and assessment;

# Insurance premium on the property;

# Replacement costs on assets used in the property;

# Repairs and maintenance;

# Interest on loan obtained to purchase the property;

# Commission and agency fee;

# Advertisement for letting out of property.

Expenses incurred on advertisement, commission and legal fees for the first tenancy agreement are not allowed as these expenses are capital in nature.

Rental losses are not allowed to be utilised to set-off against other sources of income.

Lee Voon Siong is the executive director of RKT Tax Consultants Sdn Bhd, which is an independent member firm of RSM International, an affiliation of independent consulting and accounting firms with the 7th largest worldwide network. He can be contacted at

Oh, I see. Thank you. Interest on loan can also be declared as expense.



This post has been edited by joe_mamak: Jun 28 2008, 07:14 PM