Home FAQ Accounting Hong Kong Frequently Asked Questions for the Deduction for Mortgage Interests in Hong Kong
Frequently Asked Questions for the Deduction for Mortgage Interests in Hong Kong
Q: |
How can I get deduction of mortgage interest payments from rental income? |
A: |
Deduction for mortgage interests can only be claimed under Personal Assessment. You will only get deductions for rates paid by you and a 20% allowance for repairs and outgoings if you are charged to Property Tax.
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Q: |
To be eligible to Personal Assessment, what criteria should be satisfied? |
A: |
The following criteria should be satisfied:
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Q: |
Does it mean I cannot claim the said deduction from rental income if I am not eligible to make an election for Personal Assessment? |
A: |
Yes, that is correct. |
Q: |
My mother and I are the joint owners of a property, but every dollar of rent went to my mother. Can the full amount of net assessable value be assessed as her income? |
A: |
No, the net assessable value must be apportioned equally between you and your mother. |
Q: |
What amount of mortgage interest deduction can I claim if the interest is wholly paid by me but the rent-out property is co-owned by me and my mum? |
A: |
The amount allowable for deduction will be half of the interest you paid. |