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Who's name on your lease contract?




Are you stuck in a situation where your employer's name is on the lease contract as the lessee, but you're the one paying the monthly rent? If so, you won't be able to claim rent deductions from your salary income. This is because your employer can claim the rent fee as a tax deductible expense when filing their income taxes, whether they are an individual or a corporation.


To resolve this issue, you should discuss the possibility of changing the name of the lessee to yours with your employer. This will enable you to claim rent deductions from your salary income.


However, when it comes to taxes, things can get complicated quickly. If an employer pays an employee's monthly rent, it depends on the lease contract's lessee and the usage of the rent. If the rent is for a residence for a certain circumstance and can be judged as a house, even if it's a residence hotel, then it can be a taxable income to employees or tax deductible expenses to employers according to the lessee's name.


If an employee makes a lease contract and pays the rent themselves, while the employer reimburse the rent to the employee or pay to the landlord directly, then the employee must pay salary income taxes for the rent and the company must withhold taxes. Therefore, it's important to carefully consider all tax implications before making any changes to your lease agreement.

Any questions, please let me know, jz@taxjz.com

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