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Return on rental property after tax
Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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heri wrote:Swenani wrote:heri wrote:what about commercial property like an office? The only deductions i can think of would be loan interest but if one is buying on cash basis ( loan interest rates are crazy ) then it means the tax burden will be too high making the returns very bad
is there space really for an employed person to use his savings after paying PAYE to invest in such properties? it feels like such properties can only make sense to those who want to clean ill gotten cash For commercial property, you will use the incremental income tax rates i.e PAYE(for individuals) or corporate tax rates for firms. For a commercial property, you can deduct the following 1. water and electricty bills(assuming it's not paid by tenants 2.Caretaker wages and/or management fees 3.maintenance charges and capital works 4. Land rates 5.Insurance premiums 6.Advertising for tenants 7. Bank charges 8. Cleaning. 9.WTA You can even include your fuel costs to inspect the buildings etc @Swenani thanks Good pointers. But for a small office which am considering buying in westlands . Rent would like like 50K pm and i do not foreseen any of the above expenses. Maybe just land rates? Does WTA apply? and do you know at what rate it would be assuming i buy the office at about 6.5M what will be the WTA if any? An office doesn't qualify for WTA or IBA If Obiero did it, Who Am I?
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Wazua
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Return on rental property after tax
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