tag:blogger.com,1999:blog-36739260.post7020770455248795032..comments2023-10-10T15:44:38.677+08:00Comments on KnowThyMoney: Tricks & Tips :How To Claim Tax Relief For Property Loan Interests : RM10,000 For 3 YearsKrishttp://www.blogger.com/profile/01618400061723721064noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-36739260.post-45765831014392531112011-11-14T03:26:39.628+08:002011-11-14T03:26:39.628+08:00Hi LCF,
I hope that i am not sending the wrong si...Hi LCF,<br /><br />I hope that i am not sending the wrong signals to IRB people if they one day stumbled upon my blog..lol..promoting tax evasion tactics. Well, i don't think that will happen as my blog is not that popular. :)<br /><br />This tip/tricks is not tax evasion. Tax evasion is understating your income while overstating your deductible claims.<br /><br />This method is called maximizing your tax reliefs. (financial planning..lol) That is the reason why it is perfectly legal for husband & wife to choose either to file individual or joint tax returns in certain tax conditions in order to reduce the taxes being paid. <br /><br />Yes, in worst case scenario for a person with a tax bracket of 26%, the savings per year is 26% x RM10,000 = 2,600. And for 3 years, 3 x RM2,600 = RM7,800.<br /><br />For example,<br />I kept most of my "emergency funds" in my flexi account, hence reducing my interest to <RM10,000 per annum. <br /><br />To maximize my tax savings, common sense is to withdraw my money in such a way that the interest per annum goes back to around RM10,000. More than is not beneficial as the claim is limited to RM10,000 per year.<br /><br />Then i could use the money to reinvest or just put in fixed deposit for say 2% per year and save RM2,600 (at 26% bracket).<br /><br />So if a person has multiple properties, lets say RM10,000 per year of interest EACH for 2 properties. It will be common sense to pursue this method. <br /><br />The important thing to notice on the legal requirements are the unwritten specifications:<br /><br />1. There is no cap on the total loan amount for the property that you wish to applied for this relief.<br /><br />2. The property in question can be your 1st, 2nd, or even 3rd property as long it used as residential and its S&P falls within the window frame.Krishttps://www.blogger.com/profile/01618400061723721064noreply@blogger.comtag:blogger.com,1999:blog-36739260.post-68206206539505342802011-11-14T00:40:44.663+08:002011-11-14T00:40:44.663+08:00Hi Kris, did you do an estimation if the tax savin...Hi Kris, did you do an estimation if the tax savings is really worth the extra interest being charged against your outstanding principal for the 3 years?<br />Tax avoidance=legal<br />Tax evasion=illegal<br />From tax terms, avoid != evade, go figure! :)LCFhttp://lieucf.blogspot.comnoreply@blogger.com