Yeah, I mean I wish I could enjoy lower tax rates on my income jut because someone operating a similar line of business but living in a tax haven can do so...
Yeah, I mean I wish I could enjoy lower tax rates on my income jut because someone operating a similar line of business but living in a tax haven can do so...This is the one myth that can't be killed.
The tax framework for REITs is designed so that it is broadly similar to how an individual would be treated in the circumstances.
REITs allow for lots of smaller investors to come together and also to take advantage of economies of scale from professional management.
You left out one ever so important, teensy, weensy little detail. And that is that "someone operating a similar line of business" in Ireland "but "living in a tax haven" will indeed pay similar rates of Irish income tax as you do. (They may pay even more as they don't necessarily get Irish tax credits and bands.) If they incorporate, their company is liable for Irish corporation tax and CGT.Yeah, I mean I wish I could enjoy lower tax rates on my income jut because someone operating a similar line of business but living in a tax haven can do so...
The tax system can and should be used to achieve benefits to society. We had a lower corporation tax to boost our tax take. We had section 23 relief etc to encourage particular outcomes.Yeah, I mean I wish I could enjoy lower tax rates on my income jut because someone operating a similar line of business but living in a tax haven can do so...
If you can explain how a reduction in tax take for small landlords will result in thousands of new properties being built, then there might be some merit to it.Why cant we see the bigger picture and use the tax system to "encourage" certain behaviour. Remember the vast majority of private landlords are your normal ordinary "Joe Soap".
That's the point, they are very different, so shouldn't be used as the basis for justifying lower income tax rates for small time landlords.REITs are different. We've been around this mulberry bush several times now. The reality doesn't change.
Well, a reduction in tax take for big landlords apparently worked, didn't it? And thousands of new properties were duly built. Not surprisingly as this was the very justification for introducing the REIT regime in the first place!If you can explain how a reduction in tax take for small landlords will result in thousands of new properties being built, then there might be some merit to it.
Ok we have already seen that (or at least is on its way) a reduction in the income tax for the fair deal scheme result more existing empty properties that can become rental properties.If you can explain how a reduction in tax take for small landlords will result in thousands of new properties being built, then there might be some merit to it.
And for the record, we own a rental property.
Because small landlords very rarely, if ever finance housing developments on any scale.So, why oh why, is it so difficult to imagine a reduction in tax take working to incentivise small landlords to do the same?
Holiday homes tend to be in locations that have lower rental demand.What about holiday homes? I would expect some of them could be used with the right financial incentives.
No doubt there are, but at a time of record rents, would a few hundred really make that much of a difference?What about those landlords who are intentionally leaving properties empty as renting them does not make commercial sense? I expect there are some out there?
Subsidise it? Are they not making any capital payments?Some landlords are cashing out because either they are out of negative equity and no longer want to subsidise a rental property as the net tax take is less than mortgage payments.
Agreed, but when we're delivering tens of thousands of units below demand anything that doesn't directly address new supply is just papering the cracks.Solving this issue is not just about new supply its also about encouraging existing supply to remain in the market. I emphasise the work encourage rather than force.
Because small landlords very rarely, if ever finance housing developments on any scale.
I would rather a roof over my head rather than a homeless hub or a hotel room.Holiday homes tend to be in locations that have lower rental demand.
No doubt there are, but at a time of record rents, would a few hundred really make that much of a difference?
Subsidise it? Are they not making any capital payments?
Agreed, but when we're delivering tens of thousands of units below demand anything that doesn't directly address new supply is just papering the cracks.
Can you point to evidence of that? Most of the developments I'm familiar with were financed by developers and targeted at owner-occupiers. I'm not aware of any that were funded to a large degree by multitudes of small landlords.Where did you get this idea from? It couldn't be further from the truth. Basically every small town development in the country built within the past 25 years was financed and got off the ground by resort where necessary to an available pool of almost exclusively small investors, upon which the developer could rely if there was slow demand from owner-occupiers.
No, why would I bother digging into archives to do that?Can you point to evidence of that?
You obviously don't know much about how the building industry operated in rural Ireland and in provincial towns from around 1997 on. The business model I described was very common if not dominant.Most of the developments I'm familiar with were financed by developers and targeted at owner-occupiers. I'm not aware of any that were funded to a large degree by multitudes of small landlords.
The Irish Times thinks otherwise!Can you point to evidence of that? Most of the developments I'm familiar with were financed by developers and targeted at owner-occupiers. I'm not aware of any that were funded to a large degree by multitudes of small landlords.
I don’t think that’s been true since about 2010 or so. And it did have big risks which cyrystallised around that time.Basically every small town development in the country built within the past 25 years was financed and got off the ground by resort where necessary to an available pool of almost exclusively small investors,
Well obviously, as there's barely been a new development built anywhere in rural Ireland and provincial towns since then.I don’t think that’s been true since about 2010 or so.
And it did have big risks which cyrystallised around that time.
If it was such a common practice it would surely be easy to provide evidence, without it.No, why would I bother digging into archives to do that?
Weird, because I have family in the business, one quite close to your hometown and that's not how they operate at all. None of them are aware of small landlords getting into the business of financing developments. They are using the regular business cashflow or borrowings to get developments off the ground until they are at the stage where they can start taking deposits.You obviously don't know much about how the building industry operated in rural Ireland and in provincial towns from around 1997 on. The business model I described was very common if not dominant.
You wither don't understand the point or Section 23 relief which applied to the purchase of a property, not an investment in the financing of developments.The Irish Times thinks otherwise!
Section 23 tax relief developments a roaring success story for investors
Residential schemes with Section 23 tax relief continues to attract those seeking a tax shelter for rental income, 15 years after…www.irishtimes.com
Hardly. Few small time builders if any have ever advertised their modi operandi in national or social media. And I'm most certainly not going to divulge anyone else's private business information hereIf it was such a common practice it would surely be easy to provide evidence, without it.
Where is my hometown?Weird, because I have family in the business, one quite close to your hometown
If it was such common practice they'd have nothing to hide.Hardly. Few small time builders if any have ever advertised their modi operandi in national or social media. And I'm most certainly not going to divulge anyone else's private business information here
Perhaps I should rephrase to the town where your office is located.Where is my hometown?
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