Summer Budget 2015 – Landlords Reactions

Reply to the comment left by "Ros ." at "19/08/2015 - 17:15":

http://japantax.org/?p=3997

Links in this article

Sorry - on train with unstable

Reply to the comment left by "Connie Cheuk" at "19/08/2015 - 18:00":

Yes I seen this too but wasn't sure if real estate applied to ind buy to let

Practical issues in calculating real estate income
Assuming an individual is earning real estate income that has to be reported on his annual Japanese tax return, the next step is to consider in greater detail how such income is calculated. Issues here include:

The timing of real estate income recognition (including income from ‘key money’, ‘guarantee money’ and other occasional sources of real estate income that are a feature of the Japanese real estate market)

Deductible expenses for real estate income purposes: Interest, depreciation, maintenance or improvements to the property.

Offsetting of losses arising from real estate, including limitations on the deduction certain interest and other payments.

Reply to the comment left by "Ros ." at "19/08/2015 - 17:15":

Hi Ros

At the top of page 16, on the right, Mr Treanor wrote:

“Tax on rental income can have a big impact. The costs allowable against rental income vary. In the Netherlands professional landlords are taxed on the imputed rent with a standard deduction for costs. Otherwise all countries permit deductions for mortgage interest, management and maintenance.”

So I think you can say that all countries in Europe allow mortgage interest as a deduction in calculating tax (except for the Netherlands where real figures for rent and costs are not used).

He does not use the term finance costs, but interest is the biggest part of them, and that is what we are principally interested in!

Reply to the comment left by "Appalled Landlord" at "19/08/2015 - 18:16":

Thanks Appalled and everyone else. I''ve now got USA, Canada and all of Europe covered. Just need someone smart to get me a sentence on Japan. I'll check in later as going to the cinema. Hopefully can switch off from all this for a couple of hours.
On the other MPs thread, there was one of those depressing replies from an MP saying ''we're doing this to level the playing field... we have to get rid of this generous tax perk... it'll only affect the rich...' I've asked Mark before and now I ask more generally - can someone come and pull my hair out!

RLA is running a campaign and they have requested alternative ideas which could be presented to treasury.

I have written following:

Dear Sirs,

Having read your article, I would propose that following proposals should be made to treasury:

1) New Tax legislation should only be applied to new loans from April 2017 and existing loans should be exempt as we bought our properties
under old taxation system.

2) Determination of higher rate tax payer should only be determined by combination of employment income as well as net profits made as opposed to gross rent. If tax payer remains basic rate tax payer as result of combining both employment and net profits made in rental then
tax payer should not have detriment of becoming higher rate payer for artificial income. (The income which tax payer never seen..ie: interest paid to the lender).

3) If it is absolutely unlikely for chancellor to do U turn then as a last resort, chancellor could provide tax exemption for Stamp Duty and CGT if they were to transfer their property into company.

Kind Regards

What happened to last post, I posted few minutes ago? How come it disappeared, as I did not use any fruity language.

This was email which I sent to RLA campaign as they have asked for alternative ideas which could be presented to Osborne.

Guys, if you have not already received an email from RLA then please send them alternative ideas on their campaign email.

An expatriate may also earn rental income from buying an investment property in Japan.

This article is intended to help expatriates resident in Japan understand how income from real estate is taxed.

Deductible expenses for real estate income purposes: Interest, depreciation, maintenance or improvements to the property.

That's the important bit, I think, Kathy. I couldn't cut and paste on the train as I kept losing the signal.

campaigns@rla.org.uk

Reply to the comment left by "Saeef Khan" at "19/08/2015 - 18:54":

Hi Saeef

Let’s keep it simple, just a change of rules for new purchases only. Incorporation is no good to Ros, me and perhaps many other people.