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How You Can Generate Tax-Free Rental Income

How You Can Generate Tax-Free Rental Income. 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.

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How You Can Generate Tax-Free Rental Income

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  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 • 1st 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. Generating Tax-Free Rental Income

  7. Generating Tax-Free 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

  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 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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