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money?

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  • 28-02-2017 10:24pm
    #1
    thejourney
    Registered Users Posts: 241 ✭✭


    h


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    #2
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭BrokenArrows


    thejourney wrote: »
    I have a few questions on how Property Developer's make money ?

    How do they avoid a double tax?

    Build property
    Sell for more than building cost to build.
    Profit!

    Seems pretty straight forward.

    What do you mean double tax?


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    #3
    riemann
    Closed Accounts Posts: 1,063 ✭✭✭riemann


    thejourney wrote: »
    I mean does the company pay 12%, and then your salary from your company is 42% tax?

    Successful property developers don't pay tax


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    #4
    srsly78
    Registered Users Posts: 7,157 ✭✭✭srsly78


    thejourney wrote: »
    I mean does the company pay 12%, and then your salary from your company is 42% tax?

    Corporation tax is paid on profits. So an easy way to avoid it is to not make any profit. An easy way to make no profit is to pay out all profits as bonuses etc.


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    #5
    srsly78
    Registered Users Posts: 7,157 ✭✭✭srsly78


    thejourney wrote: »
    very clever. Thank you. So there is no profits on bonuses?

    Your question makes no sense. It's like asking if there are apples on oranges.

    Profits are something a company makes, money left over after paying expenses and wages etc.

    Bonus/salary is something an individual gets. They pay income tax/prsi/usc on this as appropriate.

    Company is a different legal entity than an individual. Actually this is all assuming the developer is using a company, maybe they might act as a sole trader - in which case none of this would apply.


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    #6
    dashoonage
    Registered Users Posts: 3,127 ✭✭✭dashoonage


    Take out a huge loan from a bank
    Stick up the bones of a few houses down the back of a field.
    Declare bankrupt
    Move to Spain
    Turn off the auld mobile phone
    Be grand

    #Profit.


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    #7
    srsly78
    Registered Users Posts: 7,157 ✭✭✭srsly78


    Even better:
    Pocket all the vat money
    Buy vineyards and pink shirts etc
    Get elected to Dáil
    Declare bankruptcy


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