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How You Can Generate Tax-Free Rental Income
12

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

Mar 31, 2015

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Jean Barbary
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Page 1: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

How You Can Generate

Tax-Free Rental Income

Page 2: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

Buy, Renovate and Let Distressed Property

Page 3: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

1st Step

DUE DILIGENCELocationNeighbourhoodPropertyCustomer

Location Due Diligence Template

Page 4: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

To Generate Tax-Free Rental Income The property must be letable when bought

Weather-TightUtilities ConnectedUsable Kitchen & Bathroom

ThenRenovation cost is split between Revenue &

CapitalRevenue Cost is Tax Deductible against Rental

Income

Page 5: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

Page 6: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

Page 7: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

Common Agent/Auction Terminology:

Light RenovationIn need of

RefurbishmentCosmetic ImprovementSome General

RefurbishmentSome Renovation WorkSome Updating

Extensive RenovationIn need of ModernisationRefurbishment

ThroughoutExtensive UpdatingRenovation/

RefurbishmentFull Refurbishment

Page 8: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

FundingBridging Finance

70% Offer/Hammer20% Other Equity10% Cash Deposit

Page 9: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

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

Page 10: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

Generating Tax-Free Rental Income

Net Rent Collected has to

EQUAL

Revenue Element of Renovation Cost

BEFORE

Income Tax is Payable!

Page 11: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

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

Page 12: How You Can Generate Tax-Free Rental Income. Generating Tax-Free Rental Income Buy, Renovate and Let Distressed Property.

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

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