Hi with the ring fencing law being passed, is this the same law that if you claim home office expenses your primary house is liable for CGT when you sell it?
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Originally posted by BlueSky View PostBut many will still buy these because of the attractiveness of CG, if your properties increase by 50% in say 5 years, you are a lot ahead then buying a cash neutral property somewhere in a small town.
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Portfolio or Property by property?
This blogg might help
Book a free chat here
Ross Barnett - Property Accountant
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Rosco I think he means purely for capital gains not ring fencing.
i know someone you advised to sell his built brand new house as yield was 5.5 not 7.5 that you suggested.
Based on this he missed out on capital appreciation of 400k over 7 yrs.
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Originally posted by Bluecoat View PostRosco I think he means purely for capital gains not ring fencing.
i know someone you advised to sell his built brand new house as yield was 5.5 not 7.5 that you suggested.
Based on this he missed out on capital appreciation of 400k over 7 yrs.AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
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Originally posted by Bluecoat View PostRosco I think he means purely for capital gains not ring fencing.
i know someone you advised to sell his built brand new house as yield was 5.5 not 7.5 that you suggested.
Based on this he missed out on capital appreciation of 400k over 7 yrs.
1) This is a ring fencing thread, so hence the post about ring fencing! ie there has been little or no discussion on the two options if making a loss, which the blogg covers.
2) property investment
- there is no perfect answer
- It depends a lot on the individual investor, their circumstances, income, risk levels, goals
- Some people want to take the risk and gamble on capital gains, and some don't . In the past taking this gamble has worked extremely well, but none of us can predict the future.
- for some people, selling down one property, reducing their risk and cashflow loss is what they want and makes sense. They sleep better with less risk and debt. In this situation, 5 years later you would often kick yourself, but that doesn't mean it wasn't the right option for them to sell at that time. For some people if they don't sell, they might have been forced to sell later
As mentioned above, if reinvested into other property with better yields, they wouldn't have missed out. Or if they already had several other properties, they would have gained well on these, plus had better cashflow and an easier ride
RossBook a free chat here
Ross Barnett - Property Accountant
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a ring fencing thought/question came to my head -
if you have a property that makes a loss year after year, can/how long can the losses be brought forward to the future to balance any gains in the future? it's not unlimited years is it? or it depends if you have a trust/company vs private name?
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Originally posted by jack2016 View Posta ring fencing thought/question came to my head -
if you have a property that makes a loss year after year, can/how long can the losses be brought forward to the future to balance any gains in the future? it's not unlimited years is it? or it depends if you have a trust/company vs private name?
Main question - are you really a trader / speculator and therefore your gains should be taxed? (possibly the only reason for you to do this!)
Losses would carry forward forever, unless you lost them somehow (ie change in shareholding in a company can trigger this)Book a free chat here
Ross Barnett - Property Accountant
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Originally posted by Rosco View PostWhy are you looking to make a loss year after year?
Main question - are you really a trader / speculator and therefore your gains should be taxed? (possibly the only reason for you to do this!)
Losses would carry forward forever, unless you lost them somehow (ie change in shareholding in a company can trigger this)
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