Tax FAQ
 

Yet Another Property Investment Tax Question...... This Time Regarding Property Management Firms.....?

Question by popalock85 | Posted in United States

It's my sympathy that you can deduct the fees that you paid a company to manage investment property?

Well what if I was wanting to start my own property investment unyielding? Could I manage my own properties and charge myself a fee and get it back on my taxes at the end of the year? Or would that open a whole new can of worms?

What if a one's nearest member had a property management firm and they charged me slightly over the norm to manage the property?
You

Answer: No it's not unethical, but all you'd be doing if you started your own property investment strong, is reduce income one way and increase income the other way. Really would not reduce your taxable revenues at all, and might change regular income (rental income from the properties) to self-m income (management fees earned by the property investment firm) which would be taxable both regular tax, and self-trade tax. Also, if you paid a family member to manage your properties, they would have to pay taxes
 
 

Buying Investment Property And Tax Deduction?

Question by Walton | Posted in Canada

I am planning to buy an investment property, like a new condo, and to slit it out in the future when it is built.

My question is if I borrow money to pay for the down-payment for the new condo and it will not be completed at least for a one of years, then can I deduct interest for the money I borrowed for down-payment as it is not generating any income yet?

Thanks you

Answer: The perspicacious answer is yes it is deductible, but because it is considered a soft cost the actual cost expense can't overwhelm your rental income for the year to be considered a current expense, in your case none of the interest expense would be considered a fashionable expense. However the interest expense would be added to the adjusted cost base this would create a tax decrease against the tax liability when the property is sold.

http://www.cra-arc.gc.ca/E/pub/tg/t4036/ t40

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Tax When Selling UK Based Residential Investment Property?

Question by lifeontrack2006 | Posted in Renting & Real Estate

Merely about to sell a uk based residential investment property. What tax is payable and also what tax reliefs are available and can you point me in the operating of more information about them ?

Answer: your A- bet http://www.hmrc.gov.uk/

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German Property Investment - Tax?

Question by MCB | Posted in Germany

I wait British and German passports. If I bought a property in Germany as an investment, would I be liable to pay tax on the rental receipts and on the sale of the property in the future? If so, how much?

Answer: You would be open to pay income tax on the rental income and real estate tax at a locally different portion of the estimated value. When you sell the property you would have to pay real estate transfer tax 3.5% of the cost out. Additional if you sell before 10 years after you bought the property you would have to pay income tax on the gain.

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Should My Husband Buy An Investment Property For Tax Breaks? How Will It Affect The Amount Of Tax He Pays?

Question by SmEllY! | Posted in Australia

If we end up with mortgage repayments of $2800 a month and $1400 a month of rental return?

Answer: Some people (deliver assign to: accountants) believe in one extreme - be conservative, minimise borrowing, if at all, pay your non deductible mortgage down as much as you can.

Some other people (infer from: accountants) believe in the other extreme - go gung ho invest in forestry, pretend the normally return is more than 2% and give us 10% trailing commissions from the clients' money. (If you don't get what I disobliging, other accountants that read this should know.... )

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