You pay tax on profits, so revenue less expenses, just like any business or investment. I’m honestly not sure what your point is here.
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Aggravationstation@lemmy.world 11 months ago
Kinda sucks but at least it forces people to not be landlords for profit and only use tenancy to cover taxes on properties they own.
Ilovethebomb@lemm.ee 11 months ago
agarorn@feddit.de 11 months ago
Care to explain?
Aggravationstation@lemmy.world 11 months ago
Sure. I don’t know how it works in every country but in the UK you have to pay council tax on a property you own, even if you don’t live in it, unless you meet certain exemption criteria that vary by council.
Even if you don’t make a profit on renting a property you don’t live in, having someone else live in it and pay the council tax will mean you don’t lose any money.
surewhynotlem@lemmy.world 11 months ago
How does that prevent landlording for profit? It seems like it would just prevent holding property without using it?
But yes, we pay land tax on all land in the US, based on property value and structures. Regardless if it’s rented.
Aggravationstation@lemmy.world 11 months ago
€1000 per year is practically nothing. You’d need 25 properties to make a modest living from being a landlord.
But it would mean that you could sit on the property and re-sell it later if you were just buying it as an investment so renting it out wouldn’t be your living, it would probably be something like a retirement plan.
So if renting isn’t your living, hopefully you’d be less likely to be a dick.
Ilovethebomb@lemm.ee 11 months ago
That’s how it works in almost every country in the world.