[caption id="attachment_1206" align="alignright" width="150" caption="Photo by Leonid Mamchenkov"][/caption]
This post comes a bit late as most of you probably would have filed your income tax. From what I noticed of people filing taxes, 3 areas are commonly forgotten by taxpayers. I can share my observations:
1) Rental Expenses
Rent received from the letting of property in Singapore is subject to income tax, while your property is subject to property tax. Your rental income includes rent of the premises, maintenance, furniture and fittings.
Some people are not aware that there are allowable expenses that can be deducted from the Gross Rent to save tax. Some deductible expenses include:
a) Interest paid on the loan or mortgage taken to purchase the property which is rented out.
b) Property tax
c) Fire insurance
d) Repairs done to restore the property to its original state
e) Cost of maintaining the property (e.g. painting, pest control, monthly maintenance charges to management corporations)
f) Agent’s commission, advertising, legal expenses for getting subsequent tenants\
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