Rental Is Taxable?

[raincole 0]

Hi,

We were talking about the rental collected etc. So just wondering if those rental collected were tax-free?

Although these are additional income but the property tax should have covered it rite?

[Assassin 0]

Hi,

We were talking about the rental collected etc. So just wondering if those rental collected were tax-free?

Although these are additional income but the property tax should have covered it rite?

Of course it is taxable, under other income. But you can choose not to submit if it is not whole unit just one room rented

[raincole 0]

but shouldn't be profit then taxable?

[Assassin 0]

but shouldn't be profit then taxable?

I mean when you submit income tax you should include rental collected under other income

[applefreak 1]

not only do you have to pay income tax on rental

if the whole unit is rented out you'll pay 10% property tax instead of 4% (owner occupied concession)

[raincole 0]

so it is for all types of rental....

either hdb or condo or landed but must be whole unit is it?

[applefreak 1]

the whole unit part is for property tax purpose

the rental applies for all rental, be it whole unit or one room or even one corner

[Topspin 1]

but shouldn't be profit then taxable?

Profit (capital appreciation) is not taxable. House is considered an asset not a business

[Phantom 1]

Profit (capital appreciation) is not taxable. House is considered an asset not a business

Capital gains tax e.g. stocks/unit trusts not taxable under personal income tax.

If under a company its taxable at prevailling corporate tax rates.

[Chunky Monkey 2]

The answer is a straight YES. Rental income earned is income earned from other sources. And you need to declare. Non declaration carries a heavy penalty of tax evasion. The fine is many times more than your actual income earned. So, don't play play when it comes to IRAS.

[yoongf 11]

Yep.. nett rental income is taxable. dun play play.. since rental data is captured through stamping during lease signing.