NGO moots tax relief for paying parents’ housing costs

 REACH says children who pay their parents' rent or housing loan should receive separate tax relief.

Many taxpayers pay all or part of their parents’ housing expenses, particularly if they are retired and no longer have a steady income, said REACH coordinator Iskandar Abdul Samad. (Freepik pic)

PETALING JAYA:

A housing advocacy group has proposed that the government introduce a special tax relief for children who pay their parents’ rent or housing loan instalments.

The Centre for Community and Housing Development (REACH) said the relief should be a separate category from existing tax deductions for parental medical and care expenses, subject to a reasonable annual limit.

REACH coordinator Iskandar Abdul Samad said many taxpayers pay all or part of their parents’ housing expenses, particularly if they are retired and no longer have a steady income.

“With the rising cost of living, these expenses can place financial pressure on children who also have commitments to their own families.

“Nevertheless, they continue to fulfil this responsibility to ensure that their parents have a comfortable and safe place to live,” he said in a statement.

Iskandar said the proposal was in line with the government’s efforts to improve senior citizen welfare, as announced in the 2027 budget.

He said the proposed relief should be based on actual payments, with claims supported by rental agreements, housing loan statements or proof of payment to prevent abuse. - FMT