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 Home    Ten Items To Be Noted in Statement of Rental Income

Those who get rental income from housing and workplace have to give a statement. Those who have rental income above the exemption rates of 3.800 TL for the residence and 30.000 TL for the places of business in 2016 will give their statements until the evening of March 27th.


10 important items to pay attention when making a declaration:

  1. The rental income statement is applied according to the mode of collection. How much rent is collected should be given by considering the number of such rent.
  2. Each shareholder will give a declaration according to the rent figure obtained in the real estates. Each shareholder may deduct exemption rate from income. For example, if each of the spouses separately reports rental income from a jointly owned property, they will pay less tax in order to benefit from the exemption.
  3. Those who do not give any declaration or underreport cannot benefit from the exemption rate.
  4. In case of leaving the premises to another person without paying rent or taking a low rent, comparative rent is applied. If the precedent rent is not determined by the private courts, the real estate tax value is 5%.
  5. In the event that the rent is taken in foreign currency, the current exchange rate for the Central Bank is applied. Thus, currency is converted into TL and declared.
  6. No declaration will be given if the residence of the mother, father, sibling, child and grandparent is paid free of charge. However, this applies to one real estate for each. Even if the workplaces are given free of charge to children, parents, or siblings, the application of precedent rent must be made.
  7. Interest paid to the bank for residential and commercial establishments can be deducted from rental income.
  8. Those who have earned profits by using wages, moveable or real property cannot benefit from the exemption rate of these incomes exceeding TL 110,000 in 2016.
  9. Those who reside abroad or who live more than 6 months will not give a lease declaration regardless of the number of the office rent. However, if the rental income is above the exemption for the residences they rent, they have to give a declaration.
  10. When giving a rental statement, you have to choose between two different methods. Those who choose the Lump Sum Expense method are able to discount 25 percent of their income even if they have no expenses. Those who choose this method cannot give up this method for two years. Those who choose the Actual Expense Method will be able to deduct the following expenses.
  • Those who pay rent can be deducted from rental income
  • Interest paid on real estate purchased using credit
  • 2 percent amortization cost for rented property
  • 5% of the price that is purchased for 5 years from the acquisition date for one real estate given to the rent is reduced.
  • Insurance, maintenance and repair expenses paid for real estate rented

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