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How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

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Presentation on theme: "How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property."— Presentation transcript:

1 How You Can Generate Tax-Free Rental Income

2 Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property

3 Generating Tax-Free Rental Income 1 st Step DUE DILIGENCE  Location  Neighbourhood  Property  Customer Location Due Diligence Template

4 Generating Tax-Free Rental Income To Generate Tax-Free Rental Income The property must be letable when bought  Weather-Tight  Utilities Connected  Usable Kitchen & Bathroom Then  Renovation cost is split between Revenue & Capital  Revenue Cost is Tax Deductible against Rental Income

5 Generating Tax-Free Rental Income

6

7 Common Agent/Auction Terminology: Light Renovation  In need of Refurbishment  Cosmetic Improvement  Some General Refurbishment  Some Renovation Work  Some Updating Extensive Renovation  In need of Modernisation  Refurbishment Throughout  Extensive Updating  Renovation/Refurbishment  Full Refurbishment

8 Generating Tax-Free Rental Income Funding Bridging Finance 70% Offer/Hammer 20% Other Equity 10% Cash Deposit

9 Generating Tax-Free Rental Income Spend on Renovation £8.7k for Light Renovation = £ 6.1k Revenue Expense £26.5k for Heavy Renovation = £18.5k Revenue Expense Restoration and Replacement  Revenue Expense Additional Items & Improvements  Capital Expense INVESTMENT PROPERTY ANALYSER

10 Generating Tax-Free Rental Income Net Rent Collected has to EQUAL Revenue Element of Renovation Cost BEFORE Income Tax is Payable!

11 Generating Tax-Free Rental Income Sell AFTER Letting Keep the Revenue Losses in Portfolio Offset Capital Costs against Capital Gain Collect 10.6k Per Person TAX FREE Capital Gains

12 Generating Tax-Free Rental Income Presenting the TOOLS Location Due Diligence Template + 5 Tutorials Investment Property Analyser + 5 Tutorials


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