Title How do I account for rental income where there is mixed use of property?
Description

Where the property has both residential and commercial tenants, the income will be treated as follows:


Where the gross annual  rental income is Kshs. 288,000 or less than Kshs. 15 million, all rental income is combined in the annual Income Tax return.


Where the gross annual rental income is from the commercial tenants and or combined (residential & commercial) and is more than Kshs. 15 million, this part of the income is accounted for as the commercial rental income and taxed at either individual graduated scale or corporate rate of 30%. Remember withholding Tax on the Rental Income will also apply.
Category Monthly Rental Income