The brokerage commission, advertising, legal fees and stamp duty for the first tenant of an additional property are deductible from the rental income of this property (see example 3). Repair, maintenance, parking and gas costs are not permitted, either directly or in the form of refunds for the use of private or private vehicles (E, Q or S plates). These expenses are not deductible even if the private vehicles were used for commercial purposes. Peter also paid $12,000 stamp duty on the transfer of the title. He cannot claim a tax deduction for this expense, but he will be part of the cost base of the property for CGT purposes when he sells the property. Travel expenses related to residential accommodation are generally not deductible. Rental deficits (i.e. exceeding deductible expenses for the rental of the property by the gross rent received by the property) cannot be deducted from other sources of income. The Stamp Tax Regulation (No.
2) Regulations 2014 (2014 (No. 2) amended regulations) were issued on July 25, 2014. The 2014 Amendment Regulation (point 2) provides that the stamp duty of value (DSD) due for certain instruments relating to real estate executed on or after February 23, 2013 is calculated at higher rates (Measure 1), unless it is expressly excluded or otherwise determined. The largest exception is, among other things, when it is a residential property and the purchaser is a permanent resident of Hong Kong (HKPR) who is acting on his own behalf and does not own any other real estate in Hong Kong at the time of the acquisition. In this case, the instrument is subject to lower rates (scale 2). The 2014 Amendment Regulation (No. 2) also provides for the introduction over time of AVD for non-residential transactions, from transportation to sale to the sales contract concluded on or after February 23, 2013. You live in a four-bedroom apartment with three bedrooms. You rent one of the rooms from January 1 to Dec 31, 2019. Your tenant pays you $600 a month as rent. The total deductible expenses for the entire dwelling are $3,000. Your net rent is calculated as follows: If the costs and operating costs incurred apply to things such as garden maintenance, deductible repairs and real estate insurance, you cannot claim deductions for them as part of other expenses.
Like what. B, you cannot claim a separate deduction for garden maintenance if these expenses are already included in the organization fees and expenses. On July 3, 2014, Peter took out a 25-year loan of $300,000 to acquire a rental property. Peter`s deductible borrowing expenses were: Similarly, if you borrow to finance renovations on a property you want to rent, the interest on the loan will be deductible from the date you took out the loan. However, if their intention changes, z.B., they decide to use the property for private purposes and no longer use it for the production of rent or other income, you will no longer be able to claim the interest after modification of your intention.