Now, with the self-assessment system, tax returns and supporting documents must be kept for 7 years. Also, all rental income should be declared in addition to our salary income. Of course,the good part is some expenses are deductible from the gross rent such as interest expense, cost of repairs, assessment tax, quit rent, and agent’s commission. I also learnt an important point, which is if I start to rent out an apartment in Oct 2010, then the rental expenses that are deductible against the rental income are only for Oct-Dec 2010, for example, the loan interest expense. Even though the loan was taken earlier, interest expense for months earlier than October cannot be deducted.
So it has been a few days of (non-continuous) tabulating and still not completed the filing yet. I hope to complete it by this weekend!
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