What expenses can be claimed from rental income ?

Rental income is taxed based on the net amount derived at by deducting from the gross rental income from the year ‘allowable expenses’

Allowable expenses include :-

1. Brokerage fees paid to brokers to secure the tenant
2. Monthly maintenance fees paid to property management bodies
3. Quit rent and assessment
4. Insurance paid for that property
5. Repais and maintenance on the property
6. Interest paid to bank for loan taken to finance the property for rent
7. Legal fees and stamp duties paid for RENEWAL of tenancy agreement. Note that the first fees paid for the first time is not allowed.
8. Furniture or fittings REPLACED during the year. Please note that the initial purchase of furniture or fittings are not allowed.

Tax planning for rental income :-

1. lf you have more than 1 properties, pay off your loan for the property that you are not renting first, then only pay off the property that you are staying in.
2. If you rent out fully furnished properties, you can furnish it with cheap furniture first. Replace them with new or more expensive furniture during the tenancy and claim the replacement cost.