View Full Version : Tenancy Agreement
proud owner
21-10-13, 20:50
Can fellow experienced landlords explain to me :
In the TA, the rent of a partial furnished unit is split into 2 parts, 1 for the premise and 1 for the furniture.
Taking a rent of 10k as an example, why is the need to split the rent ?
What advantage does the LANDLORD have for doing so?
Thank you.
Not sure if the NAV from iras is based on the rent of premise only and not rent of premise plus rental of furniture. We will pay less property tax if latter is not true.
Can fellow experienced landlords explain to me :
In the TA, the rent of a partial furnished unit is split into 2 parts, 1 for the premise and 1 for the furniture.
Taking a rent of 10k as an example, why is the need to split the rent ?
What advantage does the LANDLORD have for doing so?
Thank you.
Not sure if the NAV from iras is based on the rent of premise only and not rent of premise plus rental of furniture. We will pay less property tax if latter is not true.
Less income tax..?
i heard of old cases when you can depreciate the furniture but nowadays, no such advantage, iras will tax the landlord on the full rent receive. someone correct me if i am wrong.
that TA you have is a newly drafted one? maybe the lawyers in this forum can shed some light.
Not sure if the NAV from iras is based on the rent of premise only and not rent of premise plus rental of furniture. We will pay less property tax if latter is not true.
This correct but it will takes all landlords' corporation to do this in order to lower the AV as it is calculated as average of all the rentals around the area. Some forumers are worried that it will affect the caveat of rental.
Income tax no diff.
Stamp duty of TA paid by tenant, no diff too.
In Case Heng Heng, IRAS change of mind can claim furniture rental.
Bro, read AV...
http://www.iras.gov.sg/irashome/page04.aspx?id=2110
The AV is the estimated annual rent of your*property if it were to be rented out, excluding the furniture, furnishings and maintenance fees.* It is determined after analysing the rents of similar or comparable properties. The basis of determining the AV is the same whether the*property is rented out, owner-occupied or left vacant. If your property is rented out, the AV could be higher or lower than your actual rents as the AV reflects the market rent at the time of review, while your actual rents were committed earlier.
Can fellow experienced landlords explain to me :
In the TA, the rent of a partial furnished unit is split into 2 parts, 1 for the premise and 1 for the furniture.
Taking a rent of 10k as an example, why is the need to split the rent ?
What advantage does the LANDLORD have for doing so?
Thank you.
Last time IRAS only look at rental as income. but many people spoil the market with declaring high high fixture. So now fixture and rental are all consider income.
now its still left separated. I guess in case government change policy. also some corporate rental benefits do break down how much they give as rental and how much as furnitures rental. So that might go to that also. Do keep in mind corporate rental tenants have to pay tax on their rental benefits as it consider part of income.
Talk about the income tax, is there any expenses that we can deduct from our rental revenue before declaring? Can we deduct the mice fees from the rental income for income tax submission because landlord actually don't earn the full rental income after paying the mtce fee for the tenant.
Talk about the income tax, is there any expenses that we can deduct from our rental revenue before declaring? Can we deduct the mice fees from the rental income for income tax submission because landlord actually don't earn the full rental income after paying the mtce fee for the tenant.
http://www.iras.gov.sg/irasHome/page04.aspx?id=160#Rental_expenses
http://www.iras.gov.sg/irasHome/page04.aspx?id=160#Rental_expenses
Thank you so much for the link, it is very useful.
For my case, my rental ppty is under my spouse and my name, so is it mean that both of us have to report in each of our income tax according to our share, but we don't know how much is our share leh? Can I just report under my spouse name?
Thank you so much for the link, it is very useful.
For my case, my rental ppty is under my spouse and my name, so is it mean that both of us have to report in each of our income tax according to our share, but we don't know how much is our share leh? Can I just report under my spouse name?
If im not wrong it depends on manner of holding. If joint tenancy it is automatically each party owns 50% and in that case both have to report tax. If tenancy in common your lawyer will have specific share % in the records. Just give them a call to check.
Talk about the income tax, is there any expenses that we can deduct from our rental revenue before declaring? Can we deduct the mice fees from the rental income for income tax submission because landlord actually don't earn the full rental income after paying the mtce fee for the tenant.
Dont think u can. One question: if your house is left empty and not tenanted out, you still obliged to pay maint fees right? So why should it make a difference (become deductible) when it is rented out?
Therefore it is very important to include property tax, agent fees, maintenance fees, furnishing cost, upkeep expenses etc when calculating yield.
Many will find that it doesnt really work out to be fantastic after all. As what real life guru Kelvin Fong said before, when buying for investment, ccr avg yield should be 3%, rcr 4 and ocr 5 and abv.
Dont think u can. One question: if your house is left empty and not tenanted out, you still obliged to pay maint fees right? So why should it make a difference (become deductible) when it is rented out?
Therefore it is very important to include property tax, agent fees, maintenance fees, furnishing cost, upkeep expenses etc when calculating yield.
Many will find that it doesnt really work out to be fantastic after all. As what real life guru Kelvin Fong said before, when buying for investment, ccr avg yield should be 3%, rcr 4 and ocr 5 and abv.
maintenance fee is tax deductible.. see chestnut's link.
calculating yield, we should always take the net income after expenses. however, dun forget that your ppty is (presumably) leveraged, so yield should be calculated with your downpayment+instalments paid to date as the denominator, not your total ppty cost price.
maintenance fee is tax deductible.. see chestnut's link.
calculating yield, we should always take the net income after expenses. however, dun forget that your ppty is (presumably) leveraged, so yield should be calculated with your downpayment+instalments paid to date as the denominator, not your total ppty cost price.
Yes. It using net yield it should be against your net outlay. It will still work out to around 4-5% on average for regular size units.
maintenance fee is tax deductible.. see chestnut's link.
calculating yield, we should always take the net income after expenses. however, dun forget that your ppty is (presumably) leveraged, so yield should be calculated with your downpayment+instalments paid to date as the denominator, not your total ppty cost price.
I remember now. The new tax reporting template has fields for maintenance fees. So i just follow and input. I am a law abiding citizen who 'contributes to nation building (and now, economic progress)'. :)
Do Beware. Was ask once by IRAS to produce the title to show the split in the share of the property. Otherwise you will be in their spotlight.
Thank you so much for the link, it is very useful.
For my case, my rental ppty is under my spouse and my name, so is it mean that both of us have to report in each of our income tax according to our share, but we don't know how much is our share leh? Can I just report under my spouse name?
If yours is joint-tenancy, then by default 50%-50%.
If yours is tenancy-in-common, then you will have nominated your split in %.
Just follow these % share if you want to abide by the law. Others, please don't tell us... Don't get caught! :o
Thank you so much for the link, it is very useful.
For my case, my rental ppty is under my spouse and my name, so is it mean that both of us have to report in each of our income tax according to our share, but we don't know how much is our share leh? Can I just report under my spouse name?
proud owner
23-10-13, 14:14
maintenance fee is tax deductible.. see chestnut's link.
calculating yield, we should always take the net income after expenses. however, dun forget that your ppty is (presumably) leveraged, so yield should be calculated with your downpayment+instalments paid to date as the denominator, not your total ppty cost price.
for own stay ... can we still deduct maintenance fee for income tax ?
Why in the first place need to compute rental income if it is for own stay? Cannot be staying in two houses. The official one will be the one in our IC.
for own stay ... can we still deduct maintenance fee for income tax ?
proud owner
23-10-13, 15:01
Why in the first place need to compute rental income if it is for own stay? Cannot be staying in two houses. The official one will be the one in our IC.
assuming I only have 1 property and that's where I live ...
when I do my income tax ... can I deduct maintenance fee ?
If that is possible for own-stay property, one would deduct all other expenses like interest of housing loan, fire insurance, etc. Unlikely to the case.
assuming I only have 1 property and that's where I live ...
when I do my income tax ... can I deduct maintenance fee ?
assuming I only have 1 property and that's where I live ...
when I do my income tax ... can I deduct maintenance fee ?
since your own stay place is not generating rental income, naturally the expenses incurred has no place to deduct from. So cannot. :o
assuming I only have 1 property and that's where I live ...
when I do my income tax ... can I deduct maintenance fee ?
accounting matching principle applies. what you earn from, you can deduct from. if you are working in BD/sales related job, you can actually offset up to about 15% (need to confirm this with iras) of entertainment expenses from your employment income. usually it is allowable. of coz need to keep receipts.
if u rent out one room, then yes, you can deduct proportionate expenses from there. of coz u also need to declare the rental income as well. worth it or not? u ownself think.
accounting matching principle applies. what you earn from, you can deduct from. if you are working in BD/sales related job, you can actually offset up to about 15% (need to confirm this with iras) of entertainment expenses from your employment income. usually it is allowable. of coz need to keep receipts.
if u rent out one room, then yes, you can deduct proportionate expenses from there. of coz u also need to declare the rental income as well. worth it or not? u ownself think.
I heard tat if I renovate my hse now den get it rented out, the reno is not deductible?
If it is true, why didnt it follow the matching principle here?
Furthermore, isnt reno a necc cost in restoring yr assets to a usable state which is capable of generating income?
for own stay ... can we still deduct maintenance fee for income tax ?
A clear sign u have been staying in the US for too long ;). Up there even mortgage interest is deductible , nice huh ?
In Europe the opposite is happening : gov wants to ask ppl living in his own pty to pay more. Because, by not renting, these owner-occupier deprives the gov from earning an income on the tax from the rental :eek:
I heard tat if I renovate my hse now den get it rented out, the reno is not deductible?
If it is true, why didnt it follow the matching principle here?
Furthermore, isnt reno a necc cost in restoring yr assets to a usable state which is capable of generating income?
there is a diff between expenditure that is capital in nature and revenue in nature. if you read the iras website, i think new furniture is not deductible also. anyway, no need to argue on this. iras already have their guideline, just follow.
Powered by vBulletin® Version 4.2.2 Copyright © 2024 vBulletin Solutions, Inc. All rights reserved.