Tax law is different from operating income in terms of low deduction and amortization of rental income. The key to the difference between operating income and rental income lies in whether you provide guests with additional services other than basic services, such as cleaning, safety, catering and so on.
2. What are the basic services for tenants?
Heating, lighting, parking and washing machine.
3.* * * Can the declared proportion of real estate rental income be changed at will?
It must be consistent every year and cannot be changed at will unless the ownership ratio of the property itself is changed.
4. How to distinguish between capital expenditure and expense expenditure?
There are essential differences in tax deduction methods between capital expenditure and expense expenditure. The following points can be used to judge the nature of indications: Is the effect short-term or long-term? Just restore the original state or improve the function? Is it for a whole part or a separate property? How much is it worth? (This paragraph cannot be used alone)
5. Distinguish several special cases of capital expenditure and expense expenditure:
Expenses incurred in taking care of the disabled during renovation-all expenses will be deducted in the current year. Repair or decoration of old houses before renting-all of them are amortized as capital expenditure year by year. Need for sales maintenance-capital expenditure.
6. What is "soft expenditure"? How to deal with "soft expenditure"?
"Soft expenditure" refers to interest, lawyer's fees, accountant's fees and property taxes incurred in the process of construction and reconstruction.
"Soft expenditure" that meets the following conditions can be deducted in the current year: 1989; Expenditure is related to housing renovation and construction; It's only about real estate tax reform. Any "soft expenditure" that does not meet all the above conditions should be treated as capital expenditure and amortized year by year.
7. What is the nature of the expenses incurred in applying for housing loans?
The following expenses incurred in applying for housing loans are capital expenditures, which are amortized year by year according to the loan term. Application, evaluation, audit and insurance premium, guarantee fee, agency fee and attorney fee.
8. What are the expenditure items that can be deducted from rental income?
Advertising fee, insurance premium, interest, maintenance fee, management fee, vehicle fee, office fee, attorney fee, accounting and other professional consulting fee, property tax, salary and welfare fee, travel expenses, utilities, mowing fee, rental consumption and apartment management fee, etc.
9. What expenses can't offset the rental income?
Land transfer fees, loan principal and fines, etc.
10. What are the detailed regulations on deducting vehicle expenses?
A. If there is only one house for rent, all the following conditions must be met before deduction can be made: Anju. Com article, please indicate that the source rental property is located in the community where you live; You are personally responsible for some or all of the property maintenance; Vehicles are used to carry tools and materials for maintenance. However, the vehicle use fee for collecting rent cannot be deducted.
B. If you have two or more properties for rent (the two properties must be outside your residential area and not in the same area), you can deduct the vehicle expenses for the following purposes: collecting rental fares; Supervision fee; And general administrative expenses.
1 1. Can the owner's own labor expenses be deducted? Why?
I can't. Because when you spend time repairing the house, you will inevitably delay the opportunity to do other jobs to increase your income. This is actually equivalent to offsetting the tax.
12. Can rent loss offset other income? What are the conditions?
Yes, but not below the market price, artificially creating losses.
13. Can the expenses incurred in renting a house to relatives and friends be deducted?
Yes, but the rent must be charged according to the same standard as that of foreigners.
14. What are the conditions to meet the basic housing requirements?
As a "basic residence" defined by the tax law, it must meet the following four conditions: it is a real estate unit; You own the property in part or in whole; You or your family members live there this year; You designated him as your basic residence.
15. When should you specify your basic residence?
When you sell or consider selling your house.
16. What are the advantages and disadvantages of designating basic housing?
Benefits: there is no need to declare the value-added of selling a house.
Disadvantages: the loss of buying a house cannot be deducted; The proportion of the rental part must be small; Moreover, building depreciation is not tax deductible.
17. When you change the use of the property, what will be the tax impact?
Whenever the use of a property is changed, it is regarded as the property sold at the market price and immediately bought back for the new use in the tax law. From basic housing to rental housing, there is no need to declare gains and losses. However, when changing from rental housing to basic housing, 50% of the value-added part should be recorded as taxable income, and the capital loss part can offset the capital gains of the current year, the previous year or the next year.
However, when you change from basic residence to rental house, you can choose the same purpose, but you must meet the following conditions: declare the rental income, but not deduct the depreciation of the building.
When the leased housing is converted into basic housing, you can also choose to postpone the declaration of its capital appreciation until the actual sale, provided that building depreciation has never been deducted.