How do you know the gold investment scams? A wealth management advisor arrives at your home, following a decision-phone appointment? It exposes you a miracle solution allowing you to pay less tax; you build wealth and prepare for your retirement?
Is this a scam for tax exemption?
Maybe, maybe not! You set out the criteria to be monitored to avoid falling into scams and trust the good professionals.
1. The intrinsic criteria
Under certain conditions, reduce taxation is one of the best initiatives you might take. The criteria for choosing a good tax exemption appeal to your common sense.
1.1. The quality of construction
To avoid problems, you have to deal with a real estate developer, providing all legal guarantees (perfect completion, quality of materials, standing), the total area, the number of lots and expenses forecast).
1.2. The property prices
No scam if the price is in line with local standards and proportion to the rental potential.
1.3. The location: Please!
The property must be located in a region or a city high-demand, near shops, schools, transport.
2. Recognize gold investment scams in the simulations
Financial simulations is supposed to make reliable calculations before investing. By omission or optimism, some are sometimes erroneous. Three broad categories of traps can be enameled your simulations: the revaluations, tax allocations, tax savings.
2.1. Upgrading: the revaluation of rents and charges
In the cash flow tables, it is strongly advised to check the rise in rents and charges. It is not enough that the two evolve, it is still necessary for a rent increase of 2%; the charges do not change by only 1%!
2.2. Upgrading: the revaluation of property
A property sold including all costs (or packaged) can have a real estate value of less than 10% are removed when the legal fees, mortgage and related financial fund releases. It is therefore not to revalue the packaged price. Moreover, the index of revaluation cannot be systematic, because it depends on the local market and property market in general. It is inconsistent to revalue property sold € 2,000 per m2 in Paris and another sold € 4,000 per m2 in the country!
2.3. Upgrading: the revaluation of your income
your remuneration varies from 3% per year? Attention to the annual review of the Finance Act. Not anticipate the progression of marginal increments; simulations take into account (normally) the last tax schedule for the duration of the study. 3% for 9 years equals approximately 30% between the first and the last year. The investor may even move to the upper marginal edge and therefore benefit from greater tax savings if the rate is applied. Take the weight increase by 2% (the current evolution of the cost index used by the Finance Act).
2.4. Imputation tax: the deficit ceiling of 10 700 € Land
Under the land tenure, land deficit is due on the total income (i.e. other income groups) in the limit of € 10 700. There are simulations that ignore this rule. In this case, in general, they have the tax savings each month, to complicate the recovery of land deficit.
2.5. Imputation tax: The property loss carry forwards
when the ceiling is respected by the simulation, it is necessary that the reports generated are correctly assigned solely on property tax revenues next 10 years. Available if the postponement amounted to € 3,000 and the balance of the year following land is € -9000, postponement can be attributed. The simulation truncated impute it, € 1700 for a profit of € -10,700 € 1300 and will retain the deferral.
2.6. Tax saving: tax savings by rule of three
the calculation of income tax determined by the marginal tax bracket of taxpayer. The deduction of a land deficit can be reduced to a lower marginal tax bracket. Some studies do not take into account and wrongly believe the economy up to the edge multiplied by the land deficit, is for example 0.3 x 10,000 = € 3,000. The correct procedure is to compare by recalculating them separately, the initial income tax and the income tax including the land deficit. Subtraction may be a surprise when the marginal tax bracket with land deficit is lower.
2.7. Tax saving: the absence of additional tax
De Robien law reduced to 9-year amortization eventually generates an income property rather than a deficit from the tenth year. In a study at 12, 15 or 20 years, the total tax savings is lower than that of a study of nine years. Some simulation to estimate the additional € 0 tax and CSG from the 10th year, while the land revenue is added to taxable net income increasing tax and in some cases the marginal tax bracket.
2.8. Tax saving: the non-reinstatement of the last three years
The tax savings resulting from a land deficit is definitely acquired if the rental period has been observed (9 years Robien) and if the property is not sold within 3 years thereafter. For resale to 9 years, the repayment of the last 3 tax savings is therefore expected at the end of the investment. The depreciation is increased from 2.5% to 6% per year the seventh year and 4% the 8th and 9th years.
3. Why a simulation?
Before embarking on an investment of tax exemption, it is best to know if it is possible and necessary to reduce his tax. What is the investment that best suits your goals and your situation? To find out, a tax and financial simulation, based on your own criteria, predicts profitability possible under the proposed legislation. The elements to consider in conducting a study, the control mechanisms tax, real estate, accounting and finance, typically require the intervention of a professional advisor to wealth management. The latter, with a map and all the safeguards regulating the trade, has the tools and knowledge.
4. Profitability goal
A reading of your simulation, whether stated or not, it is advisable to conduct a viability study. This is to define the return on savings that you put into operation. This is a purely financial concept particularly used in the life insurance carrier.
To calculate profitability in a complex formula, four pieces of information are needed:
- The duration of the operation in months (the supply of goods for resale)
- Net capital that you can identify at resale (resale price less the remaining principal of and other charges: capital gain potential, etc.).
- The initial contribution is generally 0 €;
- Average monthly savings you have devoted over the period.
Generally, it is easier to use a known cost to determine the capital available at the end depending on the duration, etc to know gold investment scams.
If the IRR is very important, it is not an absolute goal. Indeed, other criteria such as security-related funding with life insurance disability or that bound to the support housing and the low volatility of prices, capital formation by a voluntary savings or additional income the insured at the time where your income will decline are many good reasons to take the step to let investment.
5. Comparative tax exemption to avoid scams
5.1. Compare the tax
Pitfalls in this part (simulation in red):
The ceiling of € 10 700 is not met
The loan interest exceeds the amount of rent
The carry-overs are charged to subsequent deficits
Calculation of the economy by rule of three: land deficit x marginal tax bracket
Absence of additional tax and in case of CSG INCOME land