Comments on: Top six tax deductions for landlords

By: Roy

Roy — Thu, 03 Feb 2011 03:36:44 +0000

Thank you so much for the info.Just wondering on the interest on mortgage, can we only deduct on the first property or all property we have? Lil confuse there..

By: edward

edward — Sun, 05 Sep 2010 06:20:59 +0000

hi i recent bought a apartment in johore and receive a loan from bank.
As i am a foreigner ,i would like to know if i let out the apartment what kind
of rental tax i need to pay and is it deductible from the bank interest .are
there any deduction i can get?
thank

By: What is a MRTA - Mortgage Reducing Term Assurance

What is a MRTA - Mortgage Reducing Term Assurance — Thu, 10 Sep 2009 07:51:14 +0000

[...] our previous article, we discussed about the “Top six tax deductions for landlords” that may help real estate investors in a way to minimise their taxes. In this article, we will talk [...]

By: ongkl

ongkl — Mon, 01 Jun 2009 08:39:26 +0000

Thank you, Afiq Rohimi. Please go ahead.

Cheers

By: Afiq Rohimi

Afiq Rohimi — Mon, 01 Jun 2009 07:58:39 +0000

Oh btw, this website is full of information pertaining real property in JB. You’ve done a marvellous job OngKL, two thumbs up for your effort and hard work. You don’t mind if I add this site to my blogroll right? =)

By: ongkl

ongkl — Mon, 01 Jun 2009 03:41:15 +0000

Hi Jess,

The tax benefit of interest deduction for home is applicable to all existing home loans served within these 3 years, not only new homes purchased within this period.

Mortgage refinance is not entitled to the tax deduction benefit on interest.

Yes, one has to fulfill the requirements for rental income to be considered as business income in order to be eligible to deduct operating expenses from the income, but not necessary has to manage rental properties through an investment holding company. In fact, an investment holding company enjoys less deductibles compared to companies in other trades.

You may read the public ruling shared by Jason for more details about how rental income can be considered as a business income.

Cheers

By: ongkl

ongkl — Mon, 01 Jun 2009 02:53:19 +0000

Thanks for your sharing, Jason.

Cheers

By: ongkl

ongkl — Mon, 01 Jun 2009 02:26:45 +0000

Hi Afiq Rohimi,

It applies to all rental properties, regardless of the ownership and the number of properties, as long as the properties generate income.

Cheers

By: Jess

Jess — Sat, 30 May 2009 13:35:57 +0000

I would like to understand further on the interest portion. When it is stated that In Malaysia, from 2009 to 2011, this tax benefit has been extended to the mortgage interest of your first home. Does it mean that the purchase of the home has to be done from 2009 to 2011 in order to be entitled for this benefit? Just to reconfirm if one has paid cash for a property and later decide to re-finance it, will he or she be entitle for the tax deduction on the interest for the mortagage?

Like what is being mentioned, if you have employees, you can deduct the cost of their health and workers’ compensation insurance and also the landlord is entitled to tax deductions on legal and professional services related to the rental property. Does one need to manage their rental properties through a property holding company or at least fulfill the minimmum requirements for rental income to be considered as business income, in order to entitle oneself for these benefits?

By: Jason Han

Jason Han — Sat, 30 May 2009 06:03:29 +0000

Hi Ong.

I am still searching for professionals with an alternative answer.
Great article, here is what I found from the web.

Commercial units, shop-houses and residential properties
The letting of 4 or more commercial units, 4 or more floors of shop-houses or 4 or more residential properties or any combination of 4 units of the above may be treated as a business source of a company and the income therefrom charged to tax under section 4(a). [the entire property (except for a shop-house) constituted under the particular title should be included in the letting].

http://www.hasil.org.my/english/pdf/ruling(1)2004.pdf