Rental income is earned by business entities for allowing another party to "use" the resources (assets) of the business entities. For example, letting of property, machinery, equipment & etc.An agreement is usually drafted and agreed by both parties. The terms agreed upon usually include the details or specifications of the assets, date of agreement, period, amount of rental e.g. per month.Many small businesses record rental income on cash basis, i.e. upon receipt. The double entry for recording rental income on cash basis is:- Balance SheetIncome Statement DRCRDRCR Cash at bankXXXX Rental income XXXXExampleThe financial period of ABC Co. Ltd. is from 1 January to 31 December. On 10 January 2006, XYZ Co. Ltd. agreed to rent Level 1 of a 3 levels shop owned by ABC Co. Ltd for 3
A Globalpropertyguide.com study shows that Buy-to-let income tax rates are high in some foreign countries, but in others, rental income is completely tax free. Switzerland imposes the highest taxes on rental income of non-resident landlords, according to a study on the tax situation in more than 90 countries around the world. The study has been conducted by Global Property Guide with contributions from leading accounting firms in each country.
Tammy writes:
I've been renting out the lower section of my house. It has a separate entrance from the rest of the house and also its own sink. My renter has full kitchen privileges. I have been collecting 1/2 of my utility costs (TV/Internet, water, electricity), in a separate check, from the renter as well.
I have been treating her monthly rent as taxable income and the utility money as a
My hubby and I have considered buying our second home next year after hearing so much from our friends that they make money from their rental property and real estate.They not only have properties in Malaysia, but also in Singapore, Australia, China and New York City.
It has become a norm for the Chinese to invest their spare money in properties as according to them, "Properties only appreciate
I am a Indian Citizen.I am going to buy a apartment in DUBAI.I can remit $100000 per year outside India.What will be the tax implications on the rental income that I will receive and on the capital gains tax.As per doble taxation treaty India has with Dubai, I am liable to pay tax in India on the rentls income and capital gains tax.Please suggest.SUMIT AGGARWAL.Dubai is one of seven Emirates that constitute United Arab Emirates.The taxation on income under I T Act depends on residential status of the person and the Double Taxation Avoidance Agreement(DTAA) signed between India and another country. It is settled law that DTAA supersede I T Act if same is more beneficial to the tax payer.To know more about it , read this posting.Regarding Rental Income TaxationThere is DTAA between India and UAE and Article 6 of the said agreement deals with rental income of an immovable property.The said Article 6 is as under......ARTICLE 6 - Income from immovable property - 1. Income derived by a resid
If you are an avid real estate investor who likes to keep rental properties for a reasonable period before selling, then there is a way for you to make $125K tax-free over and above the rental income you receive. For this scenario, we will assume you are single simply because those that are married (even though you could double your tax-free income potential) would not want to do what is required.
If you are a real estate investor and single, then you could incorporate a strategy that allows an extra tax-free income, up to $125K annually, in addition to the rental income you receive already. This program takes time to set up, but you may already be in a position to get it started. The only drawback is it requires you to move every 2 years, which is why it is likely that married couples do not want to do this, especially if you have children.
How does it work?
It is actually very simple. You acquire a reasonable number of properties, you must have at least one rental property to mak
I am a NRI living in the US since Nov 2003. I bought an apartment in India in Aug 2005 and since then I have been paying EMIs. I have 2 questions.1) I am planning to rent out the apartment starting next month. I was told that once I start receiving the rent, it is taxable in India. How should I file taxes? Say, I would be getting 2lakhs of rent per year, will it fall under the same tax slabs as anyone getting an Indian salary?2) Are the home loan EMIs tax deductible? If yes, can you please elaborate on the procedure. vijay_dhayal@yahoo.comYes , the income from house property is taxable in India . You will have to file the return.Interest is deductible from house property income .The tax rate applicable for FY 2006-07 will be same as that of others. i.e upto Rs 100000 no taxRs 100000 to 150000 10%Rs 150000 t0 250000 20% plus Rs5000 Above Rs 2,50,000 30% plus +25000plus 2 % Education cessHouse property Income should be computed in following mannerRent receiptLess
