Rental Income from Property

Rental income is taxable in Singapore.However, there are expenses that you can deduct from your rental income:

• Interest on mortgage loan
• Property tax
• Fire insurance
• Commission paid on getting a subsequent Tenant
• Cost of renewing a lease or getting a new Tenant and
• General repairs and monthly maintenance charges paid to the Management Committee

Below are expenses that cannot be deducted from your rental income:

• Any expenses incurred outside the tenancy period
• Mortgage or bank loan repayment i.e. the principal repayment
• Agent’s commission, advertising, legal costs for getting the firstTenant
• Depreciation of furniture and fittings and
• Cost of renovation, additions and alterations to the property

By Eileen Tan and Ui Wei Teck, property investors and authors of Enjoying Mid-Life Without Crisis. This tip and dozens more are from their book.