Navigate to a country or continent and select Rental Income Tax from the Regional Stats menu.
To arrive at the tax payable, we assume gross rental income is:
In arriving at the pre-tax profit figure, we calculate, and deduct:
We deduct any other typical costs which a landlord pays, management charges, buildings insurance, realtor agency fees, etc. W e either choose a standard percentage deduction (if available) or typical ‘actually incurred’ costs. If real estate tax is normally payable by the landlord, we deduct that.
We use the term 'income tax' in a broad sense, as “any tax levied, proportionately to the amount of income received by the owner for letting property”. Thus VAT on renting property would be considered a "(broad definition) income tax", but municipal taxes payable by all home-owners whether renting or not, would not be considered 'income tax'.
We adopt this (somewhat unusual) definition because it represents reality. Landlords often have to pay taxes on income which are not called income tax, but which are in fact proportional to their income. All these are counted by us as ‘taxes on income’.
Rental income tax figures are, in every case, based on computations provided by accountants commissioned by us. See also a complete list of contributing firms here.
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