WHEN TO HIRE AN ACCOUNTANT FOR YOUR PROPERTY?
By Diana Alvin
If you are earning over 100,000 pounds a year or have residential/commercial properties, then you must hire an accountant to do your taxes.
Do you have a real estate company? Do you have several rental properties in residential or commercial sector? If your answer to any of these questions is a yes, then it is the right time that you hire an accountant for your property. PropertyAccountants work for real estate companies, individuals and property management firms, maintaining their financial records, conducting reviews, audits and overseeing other changes in asset management. If you are wondering whether or not you should hire an accountant to do your taxes, then read on to know.
Hire a property accountant in following situations-
You have a real estate company
If you have a real estate company in residential or commercial sector, you need to hire an accountant to do your taxes. Ideally, an accountant would provide comprehensive property tax advices, planning and consultancy services. S/he will also offer information regarding stamp duty land tax and undeclared rental income through land. These accountants specialize in showing real estate as depreciating to help you minimize taxes.
You want to sell your property
If you want to sell properties, then hiring an accountant could be beneficial. As a professional, a property accountant will help minimize your taxes on the gains you make from selling your property. At the same time, he use would a like-kind exchange reduce your taxes.
Property management firm
If you have a property management firm, then having an accountant can provide you holding structures and selling advice. The accountant will also plan, advice and do proper registrations for different properties.
You aren’t a resident of UK
Non-domicile who undertake property development services in the UK should choose a property accountant to minimize UK taxes and buy or sell property in accordance to national laws. These consultants will not just plan your taxes, they will also file papers and help in expanding your businesses.
You have rental properties
If you have several properties given away on rental basis, then you certainly need an accountant. He will maintain financial records of your capitalized equipment and real estate, overseeing any and every change in asset management, including new purchases, new rentals. The accountant will also conduct periodic reviews and audits for your company ensuring that the tenant records are well mentioned and every invoice for rent, utilities, maintenance or repairs is crafted beforehand.
Briefly stating, a property accountant should be hired if you have more than two properties as an individual, if you rent your properties or if you have your own real estate company. An accountant will generate reports on your assets, minimize all kinds of taxes and manage collections and payments to ensure that you don’t have to worry about property management.
While choosing an accountant, prefer someone who has appropriate knowledge and experience in the field. It is recommended that the accountant should also have secondary skills, such as advanced computer knowledge, information regarding federal laws and experience with property or asset management software.