Over the last few years, property investment has become both popular and profitable. Falling interest rates and a general disillusionment with stock markets, pensions and equity based investments have driven many people to build a property portfolio as a potential pension and savings plan. Investors have generally done well, which has encouraged more people to enter the market.
However, it is not all plain sailing. Where there is money being made the taxman is not far behind to make sure he gets a slice of the profits. If you want to keep his take to the minimum you need to do some serious early planning.
As a property investor you need to keep track of your income and expenditure on your properties. This applies whether you own just one property or several. We can offer a number of accounting solutions to manage your bookkeeping and reporting needs. For those with few properties we can offer specially tailored Excel spreadsheets to keep track of your business and at the end of the year we can prepare your accounts, tax computation and tax returns.
For investors with a number of properties we can provide accounting software such as Quickbooks or Sage Line 50 to manage your business. We supply the software direct from the supplier, usually at a discount, and set up your system to get you up and running. We can even update and reconcile your records over the internet.
We can help you keep as much of your hard earned money as the law allows by offering advice on various aspects of property taxation including:
Minimising tax liability and making the most of your allowances.
Using property companies and LLPs to save tax.
Maximising capital gains tax exemptions and reliefs.
We can also compute your:
Schedule A tax on your rental income and complete the tax return.
Capital gains tax liability.
Corporation Tax liability and complete the tax return.
Amount of interest you can offset against your rental income. Useful if you want to refinance an existing property to fund additional purchases.
If you own a property in the US from which you receive rental income we can help you prepare and file your US tax returns, and in many cases improve your cash flow.
You should note, however, that if you need tax advice do seek it early. If you leave it until you are about to liquidate your portfolio it is often too late to optimise your tax position.