Income from renting my house, how to file in this year?
Budget 2018 included this exemption for the first time. The idea is to encourage investors to take up more properties (residential) so that the surplus or over-hang could be reduced.
Basically, it is to take out a portion the taxable income (s.4d – rental income) and make your total tax lesser.
How much is it lesser?
50% of the income from rental of residential property is exempted from income tax. However, the rental has to be less than RM2,000 per month. For example, if you have a bungalow house rented at RM2,800 per month, sorry – it is not allowed to claim this exemption!
A good write-up is available from Mortgage Management below: