Posted by
kiwimoa
14 yrs ago
Hi,
I have read some of the other threads and I would just like to confirm what I can and cant claim on my tax return. From reading these threads, it is best to have a personal assessment?
I am employed full time in Hong Kong and also have one rental property under my name which I rent out. What exactly can I claim against tax for the rental property? I would like to think expenses such as management fees, government rates n rent, interest on mortgage etc, but it doesnt sound like I can actaully claim anything from reading this forum... is this correct??
any advice appreciated, cheers in advance K.M.
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I think Personal Assessment only really pays if rental income makes up the bulk of your income. It's probably cheaper for you to pay salaries tax and property tax separately - that's what I've been doing for years and my salary is a lot higher then my rental income but I'm not the sharpest pencil in the box when it comes to tax. You can't claim management fee or interest on property tax but only 80% of your property income is assessed so it is factored in that way. There is a box for rates in your property tax form. The best thing to do is to go to the Inland Revenue Department and ask them directly
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OK, so I can't do this online as a normal tax return? There are actually two different returns I have to do? I'm in the same boat, the rental income is not a significant part of my income, I became an accidental landlord when I didn't sell my first home here...
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The starting point is to stay away form being assessed under "Property Tax"...and instead set up your rental property under a sole proprietorship business "Mr. X Real Estate".....then which would allow you to deduct ALL expenses incurred in the pursuit of the income from the property including those you have listed. Weir & Associates can assist on this establishment for HK$2,000.
Weir & Associates
Solicitors & Notaries
16/F Tak Shing House
Theatre Lane
20 Des Voeux Road Central
Central
Hong Kong
Tel : 2526-1767
Fax : 2868-3568
email : WeirLaw@HongKongLaw.com
www.HongKongLaw.com/wweirlaw
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Associates, however if Kiwimoa already owns the property in his own name (personal), and then wants to transfer it to the sole proprietorship, wouldn't he then be subject to stamp duty? I have the same issue and will have to declare my rental income.
Another question, what rate does the rental income which I declare on my Salaries Tax Return get assessed at? Is it the same rates as my income under Salaries Tax?
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I just did my return online. Check the boxes for personal assessment and interest for rental property, plus any others applicable to you. I did note however I got a better return without claiming the interest paid against the rental income.... go figure.
I have a normal job here in HK, so my normal income was taxed at the normal rate. the online tax return 'info/help' booklet, pretty much spells out what you can and cant do. It also gave the tax rate for the rental property, which taxes 80% of the total rental income, covering admin costs of your property. the tax rate is around 16%.
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