Property Investment company

Jayminato

Hi folks,
A family member is considering buying some investment property. Question is to buy this through a company or personally. She does not want to run a business from it so wont be renting the property back to her business etc. If bought through a company the rental income from the property will be the income

Just wondering have peoples views changed over recent years. A few caveats would be,
* The intention is to hold onto the investment to pass onto family in the event of death so never an intention to sell the property unless a serious capital gain could be made which will be doubtful over the next few years.
* Accountant seems to be favouring buying through a company due to potentially lower taxation, mileage allowance, pension contributions, and these allowances to apply to each director (husband & wife)
* Accountant reckons she could claim about €24k per annum in mileage / subsistence and about another €30k @ 20% income tax.

This has probably been flogged to death but any threads I can find are from 2006/2007.

Would appreciate any healthy debate.

cheers

machu

I haven't an answer for you but a friend was enquireing about which was the best way for him to purchase a couple of shops with overhead apartments as a long term investment and to probably pass on to family with his accountant and the advice he received was the opposite he was told not to set up a company but to purchase it personally.

Maybe someone more enlightened in these matters can help

alejandro1977

As far as I am aware it makes no sense to hold property in a company as you are subject to double taxation on rental income. Also the capital gains may be different. look up the revenue site. For large investment companies and REITs things are different but for one building it's clear.

You can still make allowances for genuine expenses.

Frankly, I'd question your accountant's competence. He may be thinking of himself in fact.

Edit: is it residential property?

Jayminato

alejandro1977 wrote: »

As far as I am aware it makes no sense to hold property in a company as you are subject to double taxation on rental income. Also the capital gains may be different. look up the revenue site. For large investment companies and REITs things are different but for one building it's clear.

You can still make allowances for genuine expenses.

Frankly, I'd question your accountant's competence. He may be thinking of himself in fact.

Edit: is it residential property?

Accountant is deffo deluded on this one me thinks. Thanks for the replies.
Its a mix use property, shop on ground floor with apartment overhead.