Collection status of income from immovable capital is referred to as GMSI for short according to the revenue tax numbered 193, for the income obtained from immovable capital, the income obtained in return for the rental of the property and rights. Capital gains from real estate are subject to income tax under certain conditions (For 2022, housing income amounts are 9.500 TL.)
When Do Those With Only Residential Rental Income Have to Give Declaration?
Individuals with residential rental income are required to submit a property tax return if their rental income exceeds 9.500 TL exemption for 2022. Those who earn 9.500 TL or less from residential rental income in 2022 do not need to submit a declaration.
Can those who rent their houses deduct the rent they pay for the house or lodging they live in from their rental income as an expense?
In terms of collection status of income from immovable capital, those who choose the actual expense method among the tenants they own can deduct the rent they paid for the house or place they live in as an expense from their income.
Which Methods to Choose When Taxing the Income of Your House?
In this case, there are two methods to choose from;
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Fixed-rate expense method: If this method is selected, the exempted amount is deducted from the rental income without submitting the document. The remaining 15% is deducted from the product as a non-recurring expense.
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Exact expense method: If this method is selected, the expenses explained in the Revenue Law can be deducted from the rental income. However, expenditures corresponding to this exemption amount cannot be deducted. Proof of discounted expenses is required.
Exchange Opportunity with the Expense Method
Those who select the gross expenditure method can only return to the actual expenditure method after 2 years. Those who prefer the actual cost method can switch to the aggregation method at any time.
In Which Situation Do Those Who Only Generate Rental Income from Workplace Have to Submit a Declaration?
Those with tax-deductible workplace rental income, that is, with tax withholding, have to submit a declaration if their rental income exceeds 70.000 TL in 2022.
What is Instant Declaration System?
In collection status of income from immovable capital, the "Reporting Accessibility System", which was initiated by the tax administration within the framework of the service of taxpayers who earn certain income, especially real estate and real estate income, will be automatically prepared by the tax administration.
Third parties such as bank, title deed, insurance company. The system gets finalized and submitted to taxpayers' approval.