Rental real estate acquisition: anticipating income tax before purchasing

Before acquiring a rental property, it is essential to anticipate the taxation of the income to be generated by the investment.

On-line holding, SCI to income tax, SCI to corporate tax or other structure: the choice made at the time of acquisition directly influences the taxation of rents, the deduction of expenses, the treatment of interest on borrowing and the taxation applicable at the time of resale.

The taxation of rents depends on the set-up chosen

Two identical real estate investments can produce a very different net return depending on the tax structure chosen.

The level of income of the taxpayer, the use of debt, the importance of the work, the proposed holding period and the exit strategy must therefore be included in the analysis before any signature.

Build a rental tax strategy upstream

A preliminary study compares several scenarios and identifies the most coherent structure with the investor's objectives.

The challenge is not only to reduce the taxation of short-term rents, but to build a overall real estate tax strategyincluding ownership, financing, future income and taxation of the transfer.

Master Édouard Pruvost specializes in tax strategy advice and assists investors, executives and entrepreneurs in the tax structuring of their rental investments. Before purchasing, contact the firm to anticipate the taxation of your real estate income and benefit from a personalized tax strategy advice.