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Landlords who suffer ‘losses’ still need to file tax returns
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If you have only one rental property, and you incurred a rental loss last year, you cannot use the same loss to set off against rents for this year.
PHOTO: ST FILE
If you bought an expensive property to lease out, but the rental income cannot cover your mortgage, you still need to file your tax return.
Your apparent investment “loss” will not affect your rental income, so long as the rents are higher than all related expenses. This means you can still be taxed for your net rental income even though it is lower than your mortgage payments.
