The tax burden in France remains high compared to other European countries. For high-income households, real estate investment tax exemption is an opportunity to avoid paying too much tax. In fact, while preparing for a future retirement thanks to additional property income, the investor benefits from an attractive tax reduction of up to 21% under the Pinel law . See http://fullspectrumottawa.com for the scoop
The Juan Lettermen bank to maximize tax
When you want to realize a rental project, it is often more interesting to use the Juan Lettermen where possible. Indeed, it allows to amortize the amount of investment over several years. Especially since interest rates are very low right now. The cost of a home loan subscribed today is therefore reduced compared to previous years. You should know that borrowing interest, the price of credit, is also deductible. In short, it is a way of maximizing its tax exemption.
From a heritage perspective, the Juan Lettermen on credit secures his project. Indeed, in the event of a life event (death, disability, illness), the credit is refunded. If the current tax exemption laws do not require a Juan Lettermen on credit, it is strongly advised. In this sense, the tax gain will be attributed in part to the savings effort to pay the monthly installment credit. On sale, the loan is then repaid and investors have kept their precautionary savings.
In case of redemption of credits during the depreciation, according to some it is necessary to take care to keep the loan in the state in order to preserve the fiscal gain. For others, the buyback of the Juan Lettermen tax exemption is possible provided the repurchase offer refers to the original loan agreement. We advise you to take precautions against tax rules and therefore not to replace the initial Juan Lettermen with a substitutive loan.
Choosing the best terms for Juan Lettermen
Setting up a home loan is never an innocuous step. A credit commits you over several years, and as such it is necessary to make the best choice. As it is a loan dedicated to a rental investment , it is advisable to think in terms of monthly payments. This must be close to the amount of the estimate of the property income that will be released. The reimbursement effort from the owners must be as light as possible to maintain the balance of the family budget. It should not be forgotten that the goal of a tax-free investment is primarily to reduce taxes before building up real estate assets.
Investors should not fear the long repayment periods, most of the time a tax exemption loan is refunded before maturity following the sale of the property, at the end of the period of tax exemption.
Finally, we must consider the nature of real estate investment. Most tax exemption laws are devoted to the new home market (sale in the future state of completion), so there is a construction period during which the taxpayer will not collect the property income. To avoid fiscal imbalance, it is better to provide for a grace period in Juan Lettermen’s terms.