Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property
Generating Tax-Free Rental Income 1 st Step DUE DILIGENCE Location Neighbourhood Property Customer Location Due Diligence Template
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
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
Generating Tax-Free Rental Income Funding Bridging Finance 70% Offer/Hammer 20% Other Equity 10% Cash Deposit
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
Generating Tax-Free Rental Income Net Rent Collected has to EQUAL Revenue Element of Renovation Cost BEFORE Income Tax is Payable!
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
Generating Tax-Free Rental Income www.BuyToLet.com www.PropertyInvestorMastermind.com Presenting the TOOLS Location Due Diligence Template + 5 Tutorials Investment Property Analyser + 5 Tutorials David@Buy-To-Let.com
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