TAX QUESTIONS? YOU ASK LAH!
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Q: This year, I plan to sell the house that I have lived in for 6 years. Can I claim tax deductions on the renovation costs incurred for the house?
A: Yes, the renovation costs can reduce the chargeable gain when calculating the Real Property Gains Tax (RPGT) for the sale of the house.
Note: While renovation costs can reduce chargeable gains, this deduction is most beneficial for properties sold within the first 5 years of ownership, where RPGT rates range from 30% to 15%. For disposals after 6 years, individuals who are Malaysian citizens or permanent residents are subject to 0% RPGT
Wishing you plentiful tax savings!
Zen Chow
YYC Tax Guru
