A Landlord’s Tax Liabilities and Property Tax Calculators

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A Landlord’s Tax Liabilities and Property Tax Calculators
Words: 460 | Date: Fri, 16 Jul 2010

Property tax calculators are powerful uk property management software packages that can help the commercial landlord to calculate and make provision for the inevitable tax liabilities.  The main feature to look for in a product is user friendliness.  The whole point of the product is that a landlord with little or no knowledge of taxation rules and regulations can use it to quickly assess their capital gains tax liabilities.  There are two obvious advantages to this.  Firstly, it can save the busy landlord a lot of time trying to manually calculate the tax liability in accordance with all the rules and regulations before again double checking it direct with the Inland Revenue’s help-line.   Secondly it can save time and money on professional fees.

Good landlord tax software is an investment and before committing to purchase, a landlord should research the available products thoroughly.  There are lots of ways these days to carry out such research.  Look on-line for independent reviews of products by other professional landlords. Visit trade fairs if you can and see the product in action.

No commercial landlord wants to pay too much tax but conversely the penalties for not paying enough property tax can be severe.  There are clear advantages for the commercial landlord in having ready access to software to explore ‘what if’ scenarios.  What if property X from the property portfolio were to be sold?  What would the tax liability be?  How would this compare to a sale of property Y?  What would the tax liability be in that scenario?  This is information which is fundamental to key decisions in the commercial property sector.  Look too for a landlord tax software product that can deal with a variety of ownership scenarios.  Is the landlord tax package flexible enough to deal with sole ownership, joint ownership and multiple ownership scenarios?  The ideal product should also be able to deal with relief factors which are fundamental to tax planning and these include personal capital gains tax allowances and private residence relief.  Remember also that there have been a number of changes announced
recently to capital gains tax and you should ensure that the product chosen is up to date and that it includes a post sales technical support service.

More and more professional landlords these days are turning to specialist landlord tax software and it really is easy to see why.  The professional landlord cannot afford to take shortcuts where tax liability calculation is concerned.  The penalties for getting the maths wring in these circumstances can be devastating.   It really does pay to think and work smart though and dealing with landlord tax liability using landlord tax software is the smart way forward for the modern commercial landlord.
Kirthy Shetty,Expert Author.
Get more information on Rental property capital gains tax, Commercial Property Management

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