With the exemption of immoveable capital income, the tax free income of the taxable gains that should be subject to tax under normal conditions is called tax exemption, due to some special circumstances. In some cases, tax exemption can be applied for income from real estate capital. With the arrival of March, we enter the declaration period and it is the declaration period for everyone who has income subject to revenue. Income from the rental of property and rights is defined by the Revenue Law as income from immovable capital. Rental income is taxable and is mostly taken from property, i.e. income from areas such as residences and workplaces.
Who Submits Declaration on Rental Income?
In terms of the exemption from real estate capital income, rental income from real estate rented to someone else is expressed as "real estate income" within the framework of the provisions of article 70 of the Revenue Tax. Owners, governors, license holders, easement and beneficial owners and tenants, who earn income from assets and rights subject to rental income and rental of real estate or leased rights, are considered taxpayers of income from real estate capital.
Taxpayers whose taxable income consists only of real estate gains;
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Those who exceed the income exemption amount from renting an apartment in a calendar year have to submit a declaration. If more than one person is a shareholder in the residence, the exception is applied separately for each partner. If a person rents from more than one flat, the exception applies once for the total rental income, not for each flat.
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Those whose gross rental income is above the declaration limit will submit a declaration.
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A declaration is also requested from those who are not subject to deductions or exceptions from the income obtained from the rental of goods and rights within a calendar year and whose amount exceeds the application limit. Gains subject to real estate income other than these are considered as tax exemption.
In Which Cases Can Exemption Not Be Made?
With the exemption of real estate capital income, the exemption is valid only for real estate rented as residences and workplace rental income is not included in the exemption. Those who have to declare a workplace, agricultural or professional income in addition to their rental income cannot benefit from the exemption. Regardless of whether they have to apply or not, those who have income by renting a house above the exemption limit exceeding the legally specified gross amount each year cannot benefit from the exemption and tax exemption. Among the taxpayers who earn income by renting a house above the exemption limit, those who do not register or do not provide incomplete information cannot benefit from the exemption.