【📋Tax Reporting Season】Tax Deductions for Rental Income💰
For landlords, the rent you collect also requires tax payment!💸 However, the following items can be claimed for tax deductions:
1️⃣ Rates Deduction💼
The rates paid by the landlord can be deducted from taxes. Only the rates that you've agreed to pay and have already paid are deductible✅. However, rates that have been exempted cannot be claimed for deduction❌. Furthermore, government rent cannot be deducted from taxes🚫. So, when applying for tax deductions, ensure that government rent is not included🔍.
2️⃣ Irrecoverable Rent📆
Concerning the rent that has been determined to be irrecoverable within the year, it can be claimed as a tax deduction. When "irrecoverable rent" is recovered, this amount should be considered as rental income of the recovered year, and it should be declared in the tax return for that year📝.
3️⃣ Standard Allowance for Repairs and Outgoings💼🔧
Regarding repairs and outgoings, there is a standard allowance, which can also be deducted from taxes.
Remember to ensure timely and correct tax filing to avoid any tax issues or disputes!⏰👍