February 12th, 2015
Three Reasons why you Should Choose an Accountant that Specialises in Property
Property is a specialist area
Unlike trades, property businesses inherently contain an investment element which brings tax planning opportunities into play. This is a complex area requiring particular expertise from a qualified and experienced adviser. Listening to the “man in the pub” will simply not cut it if you want to minimise your tax liabilities.
Furthermore, rental profits are not calculated on the same basis as trading profits. Certain types of expenditure have to be categorised correctly, especially repairs, refurbishments, enhancements and the replacement of furniture and other household items.
Systems and technology
A property specialist will have systems in place that are tailored to the issues surrounding property ownership to ensure that full and correct information is obtained. This will save you income tax and, further down the line, capital gains tax.
Cloud-based technology solutions, such as Xero and PocketRent, can be used to easily record all of your rental information in real time and allow the property specialist to review your position on an ongoing basis.
Experience
A property specialist will have many clients in the property sector and so will have built up valuable experience in dealing with the complexities of the area. This makes the specialist more efficient than another adviser who doesn’t deal with property tax on a daily basis.
Ultimately, this leads to lower tax liabilities and more bang for your buck.
