Housing loans

Interest paid on the loan or mortgage taken to purchase the property that is rented out. (See Note 1)

Repayments of the principal loan or mortgage amount (monthly instalments).

Penalty imposed by banks for late repayment of loans.

Property tax

Incurred during the rental period (e.g. property tax paid for year 2019, on property rented out in 2019).

Incurred outside the rental period.

Penalty imposed for late payment or non-payment of property tax.

Balance brought forward from previous year's property tax.

Fire insurance

Premiums paid on fire insurance.

Capital sum assured on property.

Repairs

Repairs done during the rental period to restore the property to its original state.

Initial repairs before the property was rented out.

Repairs done which result in improvement/additions and alterations.

Repairs incurred outside rental period.

Maintenance

Cost of maintaining the property (e.g. painting, pest control, monthly maintenance charges to management corporations).

Cost of renovation, additions, alterations to the property (e.g. extension of car porch, construction of drains, cementing of walls and floors, installation of window grilles).

Costs of securing tenant

Agent's commission, advertising, legal expenses and stamp duties for getting　subsequent tenants.

Agent's commission, advertising, legal expenses and stamp duties for getting the first tenant of an　additional property　is deductible against the rental income of that property (See Example 3).

Agent's commission, advertising, legal expenses and stamp duties for getting the　first tenant　(See Note 2).

Costs of supervision or management fees

Costs in engaging a third party (e.g. property agent / company) to carry out activities such as ensuring rentals are paid promptly, maintenance and upkeep of the properties and attending to tenants queries and complaints.

Where the management fees is paid to a related party (e.g. relatives or own company), owners need to justify that the amount paid is at market rate and commensurate with the services rendered.

Furniture and fittings

Replacements of furnishings (e.g. furniture, fixtures, electrical appliances) to its original state.

Hiring of furniture.

Depreciation of furnishings (e.g. furniture, fixtures, electrical appliances).

New improvements/additions made to furnishings (e.g. furniture, fixtures, electrical appliances).

Internet charges/expenses

Paid on behalf of tenant (as long as it is not reimbursed by tenant subsequently).

Paid on behalf of tenant and reimbursed by tenant subsequently.

Utility expenses

Paid on behalf of tenant (as long as not reimbursed by tenant subsequently).

Paid on behalf of tenant and reimbursed by tenant subsequently.

Expenses incurred on properties that are not generating rental income

N.A.

The relevant expenses incurred on such properties e.g. rent, utilities, maintenance paid for own accommodation/a vacant property, etc. cannot be claimed against the rental income generated from other properties as the expenses are capital and private in nature. (See Note 3).