We have entered the period of declaration of real estate rental income with the arrival of March. It is possible to define the income obtained from the rental of goods and rights as securities in accordance with the revenue law. Income from the rental application is subject to tax, so the most common of these is real estate, that is, residences and workplaces.
Who Will Give Real Estate Rental Income Declaration?
All income obtained from the rental of the rights and properties specified in accordance with article 73 of the revenue law is defined as real estate capital income and these incomes are subject to income tax under certain conditions. Ownership, easement and beneficial owners and tenants who earn income from the leasehold of a leased right or property are defined as taxpayers in terms of real estate capital income.
Income Subject to Declaration Is Only From Taxpayers of Real Estate Capital Income
Declaration of real estate rental income, is explained as the amount of housing rental income exemption obtained in a calendar year, which has been announced as 6 thousand 600 liras for 2020; if more than one person is in a house in common, the exception is applied separately for each partner. In the event that an individual obtains rental income from more than one residence, the exception is applied once to the total rental income rather than separately for each residence.
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Persons to whom tax withholding is applied on workplace rental income, those whose gross amount of rental income exceeds the limit of filing a declaration,
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Those who are not subject to deduction from the income obtained from the rental of goods and rights within a calendar year and whose amount exceeds the limit of filing a declaration.
The abovementioned must submit an annual return.
Allowable Expenditures from Rental Income
In terms of the declaration of real estate rental income, the procedure of expenses that can be deducted from the housing or workplace rental income they have obtained within a calendar year are generally defined as lump-sum expense and actual expense basis. When looking at the lump sum expense application, it is possible to deduct 15 percent of the rental income from the tax base regardless of the actual expenses. The lump sum expense basis is valid for both residential and workplace rental income. However, if this procedure is chosen, it cannot be changed from this method to the real method for 2 years.