Filing taxes can be a complex task for many workers every year, but it becomes even more intricate for those who own real estate. However, it doesn’t have to be this way. Real estate can be a great asset, even before the tax office. With the correct approach, you can find outstanding tax advantages. That’s where a Steuerberatung Immobilien can help. Their proficiencies in handling residential property will pay off when it comes to filing taxes. Learn more about what real estate owners should consider when it comes to taxes and how they can save a lot with the support of a knowledgeable tax advisor, whether buying or selling a house.
What can a tax advisor do for real estate owners?
Generally, getting VermietungSteuerberatung Wien is an endeavour similar to getting tax advice in a traditional context, which is to say that you appoint an expert to represent you in all matters regarding the tax authorities. This is not simply about reducing taxes but rather having strong legal representation in front of the pertinent tax office. You grant the advisor power of attorney for tax advice, officially transferring the responsibility to them. This way, you are sure to be well-represented in your next tax return. This also means that any discrepancies or mistakes cannot be blamed on you. If you own a property, it is recommended to seek advice from a specialist who is experienced in this field. When it comes to the tax office, two aspects related to owning a property should be taken into consideration:
- when transacting in residential property, there are possible deductions that can be made for tax purposes
- the ownership of real estate can provide tax benefits
Regarding real estate and taxes, having a tax expert by your side can be beneficial. Mistakes or inconsistencies could result in a tax evasion charge, which is not a minor offence. Having an experienced real estate specialist on your side can help ensure that you are well-protected against false accusations.
How much does a real estate accountant charge?
Certainly, Rental tax advice Vienna wants to be compensated for their work. In Vienna, the cost of the service is based on the Tax Advisor Fee Ordinance. This law stipulates the amount paid for the advice, depending on the object’s value. When special consulting services are provided, additional costs may be charged. How much a consultant charges is contingent on their expertise, qualifications, and experience. If they possess knowledge in a particular area, like real estate, the cost of their help could increase. It is essential to be wary of the fee, however, as consulting a real estate tax consultant may not be rewarding if the cost of the service is equal to or greater than the savings in taxes.
What taxes do property owners have to pay?
It is required to pay taxes when buying and selling residential property; however, this is different in renting. Landlords are not obligated to pay taxes directly; however, they can use a few techniques to save money. These are the taxes that apply to real estate owners:
- property tax and property transfer tax
- income tax
- inheritance tax
- speculation tax
When purchasing or disposing of a house, the property and transfer taxes are relevant. The real estate transfer tax is particular to each state. It is essential to distinguish between property and transfer taxes since the former is a yearly charge and is generally imposed on property owners, but only sometimes. It applies to the renters too. On the other hand, when selling a property, the speculation tax is activated, depending on the increase in value of the housing during possession. Furthermore, the inheritance tax applies to inherited real estate; an accountant is beneficial in this case. To avoid considerable tax debt, a professional and accurate evaluation of the dwelling is paramount.
Practical examples of tax advice for real estate
- Attention when calculating the deadline for the sale of real estate!!!!
Generally, when it comes to real estate, there is no need to pay taxes after 10 years. However, there are some factors to be taken into account when figuring out when the cut-off date is. It is best to leave this calculation to the Tax advice rental professionals. On top of that, there can be various queries to be discussed during the consultation.
- But when it gets big, then it’s right!!!
When the tax office assumes a particular property to be commercial, a trade tax must be paid along with income tax, even if the asset was not previously subject to taxation. These delayed consequences can be life-changing, so it is best to get proper guidance on accounting for objects, etc.
- Fear of misjudgment when selling real estate!!!
When a person has sold multiple properties, they cannot avoid the issue of counting objects. What is the source of fear in this situation? Generally, the first one, two, or three sales are exempt from taxes when it comes to commercial real estate transactions. But if more properties are sold, trade and income taxes must be paid, even for earlier sales. However, it is only easy to understand all the details with a specialist’s help. If the assessment is wrong, the consequences could be severe. An essential point of the evaluation is counting objects. When figuring out if there is a commercial real estate transaction, which properties should be taken into account? Generally, if the property was held for over 10 years, it does not count as a harmful transaction.
- Dangerous contract designs!!!
A preliminary contract is recommended for those who want to benefit from tax-free property sales before the full 10 years. This agreement gives the buyer the right to purchase the property, but it will only be legally binding if it is notarized. Furthermore, if the transfer of ownership happens after 10 years, the time of the legally effective preliminary contract will be used to calculate the period.
Summary:
Do you need a professional to support you with personal and business taxes related to buying a house or other real estate? Weinhandl is the perfect choice for you. Send them a non-binding request for assistance and find out if they can offer the best help for your needs.