5 Tax Tips Every Property Owner in Singapore Should Know

Tax season doesn't have to be stressful for property owners. With the right preparation and systems in place, you can maximize your deductions and stay compliant with IRAS requirements.

1. Track Every Deductible Expense

Many landlords miss out on legitimate deductions simply because they didn't keep records. Common deductible expenses include:

• Property tax paid on rental properties
• Mortgage interest (not principal repayments)
• Maintenance and repairs — aircon servicing, plumbing fixes, repainting
• Agent commissions for finding tenants
• Insurance premiums for fire and property coverage
• Utility bills if included in the rental agreement

The key is having receipts and proof for every claim. If IRAS asks for documentation months later, you need to produce it quickly.

2. Understand What You Cannot Claim

Not everything related to your property is deductible:

• Capital expenses like renovations that increase property value
• Loan principal repayments — only interest is deductible
• Personal use periods — if you used the property personally for part of the year, expenses must be prorated
• Furniture and fittings are depreciated, not immediately deducted

3. Keep Digital Records of All Receipts

The days of shoebox accounting are over. Digitize every receipt as soon as you receive it. A property management platform like Letto lets your agents upload receipts directly against the relevant property and expense category, making retrieval instant.

When your accountant asks for proof of that $2,400 aircon repair from March, you find it in two clicks — not two hours of scrolling through chat history.

4. File Rental Income Correctly

All rental income must be declared in your tax return, even if the tenant pays directly to your agent. Key points:

• Report gross rent received during the calendar year
• Include any advance rental received
• Declare rental deposits only when forfeited (not when received)
• If you have multiple properties, declare income for each separately

5. Plan Ahead for Property Tax Adjustments

Property tax rates differ between owner-occupied and non-owner-occupied properties. If your property transitions between these statuses, you need to notify IRAS promptly to avoid overpayment or penalties.

For investment properties, non-owner-occupied rates apply — these are significantly higher than owner-occupied rates.

Making It Easier

The best time to organize your property finances is now — not during tax season. With proper categorization of income and expenses throughout the year, filing becomes a straightforward process rather than a scramble.

Letto helps property owners and their agents keep financial records organized in real-time, so tax season is just a matter of exporting what's already there.