More and more professional landlords are turning to specialist property tax calculator software and it is easy to see why. Capital gains tax calculations can be hugely complex, the consequences of not paying enough tax can be far reaching and can lead to financial hardship such as bankruptcy.
As with any financial software product you will need to do your research and choose wisely. Where possible you should look for a product that you can see in action before you commit to purchasing it. Look for demonstrations at trade fairs and check out independent reviews of products online and in trade papers.
There are many benefits to be had from using a good property tax calculator. You would, for example, know what the tax liability would be if you were to sell a property from your property portfolio. This information is vital for both short and long term decision making and effective financial planning. With good software you can plan and manage potential tax liabilities by using the what if' scenario feature that good products incorporate. You can also go back and check that you have paid the correct level of capital gains tax in the last few years. Nobody wants to pay too much tax.
Other key features that a good software package should include are the different types of property ownership that there are in the commercial property marketplace. There are a number of property ownership and investment scenarios such as sole ownership, joint ownership and multiple ownership. When calculating tax liability the product should be able to take into account the relief factors which are key to tax planning and these include personal capital gains tax allowances and private residence relief.
There have been a lot of changes to the rules surrounding capital gains tax recently and they have been fundamental changes. You should ensure that any product that you invest in is bang up to date and that it comes with good post sales technical service be it a telephone based or desk top service.