Home News Examples Related To Rental Income Declaration- Actual Expenses Method

Examples Related To Rental Income Declaration- Actual Expenses Method

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Example: Taxpayer (B), living in Poland, leased out his flat in Antalya and obtained 15.000 $ as rental income in 2018. He preferred the actual expenses method and he has no other income to declare in Turkey. His total actual expense for this house is 3.000 Dollars.

On the date of collection and expenditure, buying rate for Dollar announced by The Central Bank of Republic of Turkey is assumed as 5,50 TL.

Total Revenue  = 15.000 $ x 5,50 TL = 82.500 TL

Total Expenses = 3.000 $ x 5,50 TL   = 16.500 TL

(Taxpayers who have chosen the actual expenses method will not deduct the expense corresponding to the amount subject to exception from their income, but only the expense corresponding to the amount subject to taxation. Thus, first the total expenses corresponding to the total taxable revenue should be determined. Deductible expenses corresponding to the taxable revenue is calculated as follows:)

Deductible expenses = Total expenses x Taxable Revenue* / Total Revenue

* Taxable Revenue = Total Revenue – Amount of exception for rental income from house

= 82.500 – 4.400

= 78.100 TL

Amount of exception corresponding to taxable revenue (Amount of deductible actual expenses)

= 16.500 x 78.100 / 82.500 = 15.620 TL

Income tax for rental income of taxpayer is calculated as follows:

 

Total Gross Revenue (15.000 $ x 5,5) 82.500 TL
Amount of exception 4.400 TL
Balance (82.500 – 4.400) 78.100 TL
Amount of deductible actual expenses 15.620 TL
Taxable Income (78.100 – 15.620) 62.480 TL
Amount of income tax calculated 13.749,60 TL
Amount of income tax payable 13.749,60 TL
Stamp duty 72,70 TL

 

 

 

 


Source: GİB
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.


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