When considering the potential for growth in value, steady income, and favourable tax treatment, it’s hard to find a better bet than real estate. In addition to the monetary gains, real estate investors may reap tax benefits, including tax sheltering.
Property ownership may be lucrative in London, provided the investor knows the applicable tax rules. When it comes to property rights, British law is quite lenient. However, this does not follow that taxes are easier. In fact, 35% of self-employed contractors stress out about making accounting mistakes.
Knowing the tax ramifications of owning, renting, and selling a piece of real estate is essential for every investor in the real estate sector.
You’ll need to overcome several obstacles before putting money into real estate. Professionals providing real estate accounting services should be adept at correctly allocating costs and sharing their understanding of relevant tax laws and accounting principles.
For the sake of your company’s financial security and the success of your real estate investments, your accountant must have extensive experience in the field of real estate.
We know just the right people for you.
Before hiring an accountant, there are a lot of factors one should look into. Of course, you only want the best. And to hire the best, you should look into the following factors:
Real estate investment requires a lot of particular knowledge. Finding an accountant who specialises in the real estate investment market and has experience in the field will help more than finding someone who doesn’t.
Understanding the best ways to set up your finances around your taxes, such as negative gearing, investing in property improvements, and even how to set up the ownership of the property, are green flags to an accountant you are eyeing.
They should be able to look at your finances from a wide range of angles. It’s essential that your accountant takes care of your real estate investment and overall finances and considers this when figuring out the best way to set up your investments and business.
A good accountant should always know what changes have been made to the tax laws in your area and let you know if and when you might want to change your strategy or setup.
For example, a good accountant would look at protecting your assets and reducing your risk and liabilities by structuring your investments correctly. Finding an accountant who is proactive with you and keeps you up to date on new opportunities gives you peace of mind to know that your finances are being managed well.
An excellent accountant should be willing to disagree with you and be able to show you clearly how you should do things.
This shows how sure they are of what they do and how well they know how to do things.
Too many people will try to make you happy by telling you what you want to hear and doing things the way you think is best. On the other hand, a real expert is ready to show you better ways to do things, especially if you don’t know much about that field. A professional who is sure of themselves is willing to tell you when you are wrong, and a skilled professional will be able to show you and teach you new things, which can make you more sure of them and trust them more.
With the tools we have today, we expect our consultants and experts to respond quickly and give us an answer within 24 hours.
Specialists who are organised and good at what they do should have systems in place to answer your questions quickly and effectively and give us the chance to get more information or talk to them if we want to.
This is the kind of service we’ve come to expect, and this is the level of professionalism we should look for in our accountants if we want our financial and investment structures to work as well as possible.
Understanding your properties’ current market worth and the equity you’ve built in them might help you save for a down payment on a new investment property.
The risk of financial ruin increases proportionally with the number of properties owned. Landlord insurance, building insurance, and income protection insurance are all critical to have and keep up to date.
Diversification is vital to maximising growth while minimising risk to your total returns.
Because fixed expenses, such as insurance and rates, tend to rise over time, it’s essential to regularly review your budget to account for this trend and any potential impact it may have on your bottom line.
Comparing the benefits of refinancing with the costs should be done carefully. Real estate investors need to orient their financial actions to specific times and climates to save money over the long term.
Investing in quality rather than quantity will ensure optimum rental returns and the fewest vacancies in your portfolio.
Don’t be in a hurry to acquire another investment property with the proceeds from selling an existing one. Do not rush into reinvesting the proceeds from your best-performing assets.
Seek ongoing expert guidance to ensure you can afford your next investment property and comprehend the full scope of its tax effects. It would be best to reevaluate your investing plan and calculations before making more property purchases.
Our tax experts maximise all tax deductions, credits, and breaks available to you to the fullest extent possible. All of your company’s tax returns will be filed correctly and following HMRC guidelines, thanks to the work of our seasoned tax professionals.
Whatever your international tax needs, our team is here to assist you in minimising your UK and foreign tax liabilities.
The tax you will owe depends on how you set up your personal and business operations in a foreign country. To help you pay less in taxes worldwide, we’ll draught a customised strategy just for you.
If you or your business are concerned about paying too much in taxes in the UK or elsewhere, our tax experts can help.
We will ensure compliance with every aspect of your specific tax position by providing you with expert advice. You can use our service for more straightforward UK tax filing. These tax services help you enhance your wealth while reducing your tax expenses.
Unless you are confident that you can navigate a tax audit or inspection on your own, you should seek professional guidance as soon as possible.
If you are having trouble making your HMRC payments or resolving other HMRC issues (such as those related to VAT, PAYE, self-assessment, or corporate tax), we can help.
However, we can take preventative measures to guarantee that you never have to deal with the HMRC tax investigation in the first place.
These are just a few of the many services we can provide. Interested in something not on the list? Give us a call.
Borrowing money to acquire an investment asset is an example of negative gearing. If the “losses” from an investment don’t cover the mortgage and other charges, they might be deducted from your yearly income before taxes are calculated.
Check with your tax advisor to see if negative gearing makes financial sense based on your income level or if you would be better off looking for a “positively geared” property in which the renter covers the mortgage.
Almost half of the landlords don’t claim depreciation on their investment property, losing out on thousands of dollars in potential tax savings. Therefore, the answer is an emphatic affirmative. But check with your bookkeeper nevertheless.
However, many property owners either ignore or are unaware of depreciation’s advantages. Or they don’t have an up-to-date depreciation schedule that would allow them to take advantage of the write-off of depreciating assets like carpets, drapes, stove cooktops, certain light fixtures, shower heads, etc.
In addition, the $650-$700 per report cost of creating a depreciation plan is entirely tax-deductible.
Landlords can often deduct between 2.5% and 10% of the original purchase price of an investment property each year in depreciation, depending on the kind of property.
Depending on your financial circumstances, you may want to consider purchasing an investment property under your name, your corporation, your self-managed super fund, or the name of a family trust.
Your accountant is the right person to talk to about this.
While tax considerations are important, they shouldn’t be the driving force behind investing in a home. But if you don’t factor in taxes, you might end up paying a hefty sum. When you invest in real estate, you want to be sure you get the best possible tax treatment for your money.
When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients.
It's a win-win situation for everyone.
Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.
So let our experts work for you, and you won't regret it even a bit.
Book a call today to get started.