Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Our platform has all the tools you need to do your accounting yourself.
Dear Sir/Madam, I recently purchased commercial property that is completely separate from my private residence. I would like to use this property to house my business.
Can/must I include my loan as an expense spread over x number of years and thus depreciate it?
Can/must I register my repayments for this loan as expenses?
Kind regards,
Karol
I'm in the same boat. No idea how to enter this.
For anyone in the same situation:
Dexxter actually advises against entering the full purchase cost of your office in your accounts.
You can read why they do this here: https://dexxter.be/drie-redenen-office-huis-beter-niet-inbrengen-als-kost/
This applies to homes and home offices, but it should also be extended to other real estate such as commercial properties.
But that is, of course, a decision you will have to make yourself.
On the one hand, you have the advantage of being able to record your depreciations as an expense, which reduces your current profit and therefore means you pay less taxes.
However, if you sell this building or you stop the business, which means you have to sell it to yourself, you will be taxed on the sale of the building.
Since most buildings increase in value, this is disadvantageous in most cases.
You actually pay less taxes now, but you will pay more taxes later when the sale of the property takes place, because you will be taxed on it.
In terms of personal income tax, we are quickly talking about 50% tax, which does not really make it worthwhile.
In a company, the situation is different because you pay corporate income tax there.
Notary fees also appear to be directly linked to property purchases and are therefore not deductible.
You do not record your loan repayments as expenses.
The borrowed capital and the refund have no impact on your accounting.
The interest you pay on the loan is a deductible expense.
You enter this under expenses, for example by uploading your bank statement.
Your bank statement usually states how much interest you pay per month.
You can also use your repayment table, which clearly states the monthly interest amount.
Notes from myself and Dexxter:
What we are providing here is actually individual tax advice.
In principle, this is legally reserved for certified accountants.
But if you want to be absolutely sure, I would advise you to consult an expert.
On that page, you can find independent accounting firms that are happy for you to take care of your accounting via Dexxter. You can also consult them for specific tax issues.
I requested a summary of the interest paid and simply entered it as an expense.
The same applies to the costs (notary and file costs) of the purchase itself.
I assume that the easiest thing to do is to enter the interest at the end of the year in Q4, provided you have sufficient turnover.
You really should try it out for yourself. Even if you don’t have a company number yet, you can already go ahead.
