Sublet Flat

[dreamhouse 0]

hi,

when filling up hdb application for subletting of my flat, i am asked to enter the amount of flat rental vs furnishing/fittings rental

can i know whether the amount i fill in make any tax difference or anything like that?

what is the usual proportion?

[kalimantan 6]

i also sublet one room.

Go to hdb online site to provide tenant particulars, room rental only ,,,

got f/f rental ?

[edenstrauss 3]

I'm also very interested to find out about this.

I was told by some landlords that we could break down our gross rent into the following in the Tenancy Agreement (TA) so as to save on taxes:

a) Rent of premises (flat/room)

b) Maintenance (aircon servicing, washing machine repairs, etc)

c) Rent of furnitures

d) Fittings - I still have no idea what this is. Is it appliances?? e.g. fan, etc

So where does PUB bill come under??

And does stipulating all these explicitly under the TA really help in saving on taxes on rental fees? Or how does it work?

Any experts in this??

Many thanks in advance!

Edited December 21, 2010 by edenstrauss

[blue_skies 3]

hi,

when filling up hdb application for subletting of my flat, i am asked to enter the amount of flat rental vs furnishing/fittings rental

can i know whether the amount i fill in make any tax difference or anything like that?

what is the usual proportion?

It doesn't matter what proportion you put down. Where rental income is concerned for tax purposes, you need to calculate the gross rental income (i.e. rental of ppty + furniture & fittings).

However, if you replace any furniture or fittings etc, this can be offset in your earned rental income. You can read up more on what is deductible from the iras website under the section "How to compute rent"

http://www.iras.gov.sg/irasHome/page04.aspx?id=160

Hope this helps!

[edenstrauss 3]

Hmmmm, I don't think this is going to make much differences to the taxable amount for rental income.

I was told by the IRAS hotline that if we sublet the entire flat, we could minus off the total amount for Property Tax & HDB interest; and if u rent out TV to the tenant, u could claim TV taxes.

But if it's just rooms, we have to pro-rate these amounts by square feet of the rooms rented out.

[dreamhouse 0]

from what i gather so far, you can have tax benefit if you rent with furnishing (but the proportion declared doesn't really matter)

we can claim relief for expense incurred in providing the furnishing (ie if TV spoiled and i replace with a new one, i can offset my rental income with the cost of TV)

correct?

[LPG 0]

where is the URL to apply for HDB approval to sublet entire unit ?

I went to HDB online and it guided me to a section to sublet, after punching in

relevant info, it requires me to enter the tenants details ?!?!? I need to seek

HDB approval first, advertised etc before I can have tenants details right ?

[dreamhouse 0]

where is the URL to apply for HDB approval to sublet entire unit ?

I went to HDB online and it guided me to a section to sublet, after punching in

relevant info, it requires me to enter the tenants details ?!?!? I need to seek

HDB approval first, advertised etc before I can have tenants details right ?

that is correct - you have to find tenant first then apply...

if you meet the requirements (esp minimum occupation period), your application will be approved (immediately if i remember correctly)

[blue_skies 3]

from what i gather so far, you can have tax benefit if you rent with furnishing (but the proportion declared doesn't really matter)

we can claim relief for expense incurred in providing the furnishing (ie if TV spoiled and i replace with a new one, i can offset my rental income with the cost of TV)

correct?

Yup if I'm not mistaken this expense must happen during the tenancy and not before securing a tenant in order for you to offset the expense from your rental income. And you need to keep proof of expense too, so do keep the receipts.