Income Tax - Expense Question

dgeralds

Supremacy Member
Joined
May 19, 2001
Messages
5,438
Reaction score
1,249
I have a property which is being rented out. I re-negotiated and rented out the property again in 2017. I did not engage an agent. The running around, negotiating, preparing contracts, doing leg work and all took time. But since all these are done by me there are no receipts. Can I charge a certain sum of dollars as EXPENSE for the work that I have done (though no receipts)? Can I claim 1 month rental? Thank you.
 

highsulphur

Great Supremacy Member
Joined
Aug 16, 2011
Messages
65,561
Reaction score
31,170
I have a property which is being rented out. I re-negotiated and rented out the property again in 2017. I did not engage an agent. The running around, negotiating, preparing contracts, doing leg work and all took time. But since all these are done by me there are no receipts. Can I charge a certain sum of dollars as EXPENSE for the work that I have done (though no receipts)? Can I claim 1 month rental? Thank you.

Short answer is no.

But iras now allow a lump sum expense deduction for rental. You should read it up on their website
 

arctician

Arch-Supremacy Member
Joined
Oct 12, 2003
Messages
17,189
Reaction score
570
no, that is not considered expenses, unless you are paying comm to the agent.

I think IRAS allowed you to assign a default % of annual rental as expenses if you want to avoid itemizing all the expenses, but their default % is much lower than actual expenses incurred if you add in maintenance, ppty tax, finance expenses, repairs and svcg

For me i will expense based on the receipts that i collated over the past year, i bypass agent too and renegotiating contract extension, legwork etc are not qualified as deductible expenses under IRAS.

edit: if i can expenses additional line items just because of personal/additional time incurred, let us know :o
 
Last edited:

sgdividends

Senior Member
Joined
Oct 11, 2008
Messages
2,372
Reaction score
12
no, that is not considered expenses, unless you are paying comm to the agent.

I think IRAS allowed you to assign a default % of annual rental as expenses if you want to avoid itemizing all the expenses, but their default % is much lower than actual expenses incurred if you add in maintenance, ppty tax, finance expenses, repairs and svcg

For me i will expense based on the receipts that i collated over the past year, i bypass agent too and renegotiating contract extension, legwork etc are not qualified as deductible expenses under IRAS.

edit: if i can expenses additional line items just because of personal/additional time incurred, let us know :o


Mortgage interest is not within the 15% of annual rental.

Meaning if mortgage interest = $2000 ( example)
then relief is =$2000 + 15% of annual rental.

Just to check, is it true that most people's rental expenses( other expenses other than mortgage interest) is higher than 15% of annual rental usually?
 

arctician

Arch-Supremacy Member
Joined
Oct 12, 2003
Messages
17,189
Reaction score
570
Mortgage interest is not within the 15% of annual rental.

Meaning if mortgage interest = $2000 ( example)
then relief is =$2000 + 15% of annual rental.

Just to check, is it true that most people's rental expenses( other expenses other than mortgage interest) is higher than 15% of annual rental usually?

of course bro. just use an average D9 condo with average rental of $3k per month with monthly maintenance of $400, expenses incurred already took up 13% of income, and thats assuming back to back leasing.

You havent even factored in aircon svcg, fire insurance, misc SP services and broadband (if landlord paying), property tax, agent commission and misc repairs.

I rather do all the P&L in excel and declare accurately
 

dgeralds

Supremacy Member
Joined
May 19, 2001
Messages
5,438
Reaction score
1,249
Thats what I do too.

of course bro. just use an average D9 condo with average rental of $3k per month with monthly maintenance of $400, expenses incurred already took up 13% of income, and thats assuming back to back leasing.

You havent even factored in aircon svcg, fire insurance, misc SP services and broadband (if landlord paying), property tax, agent commission and misc repairs.

I rather do all the P&L in excel and declare accurately
 

sgdividends

Senior Member
Joined
Oct 11, 2008
Messages
2,372
Reaction score
12
of course bro. just use an average D9 condo with average rental of $3k per month with monthly maintenance of $400, expenses incurred already took up 13% of income, and thats assuming back to back leasing.

You havent even factored in aircon svcg, fire insurance, misc SP services and broadband (if landlord paying), property tax, agent commission and misc repairs.

I rather do all the P&L in excel and declare accurately

Thanks..makes sense . D9 3 k rental per month very low though...
 
Important Forum Advisory Note
This forum is moderated by volunteer moderators who will react only to members' feedback on posts. Moderators are not employees or representatives of HWZ. Forum members and moderators are responsible for their own posts.

Please refer to our Community Guidelines and Standards, Terms of Service and Member T&Cs for more information.
Top