Any progress? Did you talk to your landlord?
Was there anyone said that kind of thing? If you plan to move soon, or already moved from the house, using the rent deduction would cause no problem.
No. These days I’m really tired and lazy. And I forgot to do it 
Also I’m not sure if I want to bother her if I can’t actually claim for that money. If I can do it for let’s say the last two years because I can get some proof from the bank, then I will ask her. But if I can’t get tha money back because the contract doesn’t have my name on it, I prefer to ask the landlord about other things, like when the fuck she’s going to fix the window panel that broke years ago…
I’m looking at a new apartment where the landlord says that I can report rent on my taxes.
I really like the apartment, but it’s just barely out of my budget range. With deducting taxes it would be perfect.
Has anyone had a positive experience with deducting rent? I’ve heard horror stories, so I’d like to know whether it’s really possible.
Also, around how much can I get back? The apartment is $30,000/month.
If your landlord will give you the receipt, you can use that and your rental contract for proof when you file taxes in May.
The deduction from your salary is capped at 120k.
My landlord isn’t paying taxes on his rental income and if I were to turn in the deduction, I’d find myself looking for a new apartment. I’ve had one honest landlord who provided the receipt.
As @Aikaili mentioned, yes it’s possible—I’ve done it consistently for more than a decade. The maximum deductible is NT$10,000 / month. But at least in Taipei City, you’ll need to have receipts.
Guy
Does a $120,000 deduction mean that your declared income is reduced by that amount? Assuming a 5% tax bracket, I’d get 120,000 x 0.05 = $6,000 back.
Is this correct?
No.
But it will be of benefit to you.
Guy
This blog might help you understand.
Q: How do I compute tax in Taiwan?/ How do I compute a tax refund in Taiwan?/ How do I calculate Taiwan income tax in Taiwan?
A: Take your gross net salary and subtract applicable exemptions and special/standard deductions (if you use itemized deduction, then you cannot use the personal and married standard deductions). After this, you can see which tax bracket your wage falls into, and you can subtract the progressive difference. Multiply this by the rate of the tax bracket and you will arrive at the amount of tax owed.
Alternatively, if you file taxes online, the computer will compute your taxes for you.
For example:
Let’s say the gross salary for me and my spouse is 2,500,000 NT. I am married and have one child, so I subtract the personal exemption for my family (88,000x3=264,000), subtract the special deduction for salary for me and my spouse (200,000x2=400,000), and also subtract the standard married deduction (240,000) ending up at 1,596,000 NT. This amount falls under the 20% tax bracket (see table above), which is 319,200. Then I subtract the progressive difference for that tax bracket, which is 134,600, ending up at a total of 184,600 NT tax due.
Gross Salary 2,500,000 NT
-264,000
-400,000
-240,000
= 1,596,000 x 20% = 319,200
-134,600
= 184,600 NT total tax due
I went to the tax office about the rental deduction and they asked me for the contract with the landlord’s ID number. I hesitated and said I’d come back later. Will this cause the landlord to face fines, and then the landlord could keep my security deposit since we signed a no-tax lease? Anyone with first hand experience after reporting this deduction on a no-tax lease?
Maybe this kind of lease opens you up to civil lawsuit where the landlord can sue you for the money they were fined (i.e. extra taxes they end up having to pay).
I don’t get why you’d agree to sign a lease where you wouldn’t claim the tax deduction then just go and claim the deduction anyway?
Seems like you should have brought this up when you signed the contract (in which case you’d be paying more in rent), unless you’re trying to get back at your landlord for something.
- The landlord could face fines if has been avoiding paying taxes on this property.
- The landlord could keep the deposit to cover any damages to the apartment, or unpaid bills. Keeping YOUR money as retribution for HIM not paying taxes is illegal. However, since he has your money already, it might be difficult to get it back.
even if the landlord tried to sue you, they have no claim, if they are evading taxes, they can’t sue you for damages for their illegal actions. this doesnt constitute a breach of contract.
not a lawyer ->seek professional legal advice.
If you bring up the tax issue, your rent will definitely get higher.
If you don’t bring it up and claim it anyway, your rent will probably be lower - and morally speaking I don’t see any issue with claiming it anyway.
Usually, parts of contracts about illegal things (such as tax evasion) should be unenforceable.
It just might result in all kinds of (legal) hassles if the landlord decides to keep the deposit etc…
The other thing is that the rent deduction only benefits you if you are not using the standard deductions. So definitely double check - or it might be lots of fuss about nothing…
Yeah, but since they have already discussed this when signing the rental contract, I see this as him wanting to benefit both from the lower rent due to the landlord not paying taxes and then from the tax deduction. If it were a moral issue of him wanting landlords to pay taxes, they should have said that from the beginning and paid the higher rent, IMO…
It’s not the tenant’s problem that the landlord doesnt pay his/her taxes. I wouldn’t apply if I wanted to extend the lease but if wrapping up the rental would have no qualms.
Yeah, but then you’ve already knowingly and willingly benefitted from the tax evasion and reneged on your agreement with them, so it’s not like you’d be on the virtuous side of things either.
The Landlord would likely try and not give you back your deposit. In that case, you can extend your stay at the unit for two months to compensate yourself for the trouble. Would advise changing the locks.
While I personally do not agree with that, I would still be worried that a judge / mediator might see things similarly in case this ends up in front of a court.
At that point, all potential savings from the rental deduction would probably be more than nullified with the cost for a lawyer at least…
Which part do you not agree with?
OP already indicated that they knew they’d signed a “no-tax lease” and now want to claim a deduction for it. If they’d wanted to claim the deduction, they could have brought it up with the landlord at the beginning and accordingly paid a higher rent, no?