Property Tax
Let's understand your property ownership structure
π€
You Own the Property Solely
File together on BIR60
βPart 5 (Profits Tax): Report business income & deductions
βPart 3 (Property Tax): Report rental income & claim 20% statutory deduction
βPart 7: Elect Personal Assessment to deduct mortgage interest & claim personal allowances
Click to continue with this option
π₯
Property Owned Jointly
File separately on BIR60 + BIR57
βYour Business (BIR60): Report only your business income
βRental Property (BIR57): Co-owner reports total rental income
βIRD splits: Income split by ownership % if you elect Personal Assessment
Click to continue with this option
π‘ Most Important Step (Both Scenarios)
You must elect Personal Assessment (Part 7 on BIR60) to:
- β’Deduct mortgage interest on the rental property
- β’Offset business loss against rental income
- β’Claim personal allowances (child, parent, etc.) against total income