Samual
Posts:2
 |
| 19 Jan 2007 19:57:42 |
 Alert
|
I only have one buy to let property and have it now for almost two years. I spent the first six months developing it and then took three months to gain tenants. Can the cost of this work decrease tax payments?
Also, would any of you advise to do my tax returns myself? I have not done this before and have not attempted this years yet. Any advice will be appreciated!
Sam |
|
|
|
|
dminkin
Posts:26
|
| 23 Jan 2007 13:26:11 |
Alert
|
Yes any repairs/renewals is a legitimate expense so gets deducted from any profit.Interest payments on a mortgage also get deducted.
Major extensions etc though count as a capital expense in theory improving the value of the property so this only gets accounted for when you sell.
Replacement kitchens used to be treated like this too but are now able to be claimed as an expense.
If you show a loss in a tax year this gets carried forward to following years. |
|
|
|
|
Lizzie
Posts:12
|
| 31 Jan 2007 13:22:05 |
Alert
|
dminkin - are you sure that any tax loses can be carried forward? If you are an individual rather than a company I thought that you couldn't carry loses forward. I know that limited companies can carry loses forward, but I'm not sure about individuals and possibly partnerships.
Can anyone confirm if this is right? |
|
|
|
|
dminkin
Posts:26
|
| 14 Feb 2007 11:55:46 |
Alert
|
I'm positive.What you are getting confused with is if you are a company you can roll over property.i.e. sell and buy without paying capital gains tax.
Have you not got a chartered accountant? If you have major repairs which put you into a loss situation or no income coming in it gets carried over to following years until you make a profit. |
|
|
|
|