Real Estate Company – Real Estate Agency Advantages
- By Frank McCourt
- October 18, 2022
Purpose
The real estate company was created with the aim of optimizing the yield of managed assets and making the tax burden functional, known as a real estate spin-off, which consists in separating real estate investments from ordinary business activities online real estate courses in Nevada.
Definition of real estate
There is no single definition of a real estate company but there is also no regulatory regulation in the strict sense governed by the Civil Code or by tax laws. However, we have the custom of defining in this way all the companies that carry out their main activity in the real estate sector.
Classification of companies
With regard to the activity carried out, it is possible to identify different types of real estate companies:
real estate for sale, which purchase properties subsequently intended for resale;
management real estate that purchase real estate to lease it to third parties;
construction real estate, have as their sole object the construction of real estate.
Tax discipline of the various real estate companies
Each company is subject to a different tax regime.
For real estate for sale, the income obtained from the sale of real estate, which represents sales revenue, according to art 53 of the TUIR will be deemed to be fiscally achieved only with the legal transfer of ownership.
For management properties, the properties are held permanently by the company, for example buildings and land, therefore they will affect the profits that will be obtained from the property in terms of rent.
The determination of the taxable income of the management real estate follows the rules relating to the determination of land income according to the income classification provided for by Article 6 of the TUIR.
The art. 43 of the TUIR defines instrumental properties by destination the properties that the owner uses for the exercise of his business activities, art and profession, eg. the building that grants use to the employee who has transferred his registered residence for work reasons.
Therefore, the costs incurred for the property recognized in the financial statements must be subject to a specific increase, because they cannot be deducted; instead, the value of the revalued cadastral income will be taxed.