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This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.Episode 31: Boost your quality of life with real estate management!I would like to send you the contents.

As part of our series titled "What do real estate salespeople mean?", this time we will be discussing "What are the tax savings benefits salespeople mean?"

Can you save on taxes by buying an apartment?

There are a lot of unique topics that are discussed when selling income-generating condominiums.
Recently, there has been an increase in YouTube videos like, "Don't be fooled by sales tactics for condominium condominiums."

One of the most common reasons is that purchasing an apartment can help you save on taxes.

Many of you may already know how it works, but as a basic introduction, I will explain how it works today.

Since the target audience for sales is often the so-called salaryman demographic, one of the typical sales pitches is that "you can get back the income tax that was deducted through a refund."
When you hear this phrase, many people probably think, "Are you serious?"

If you have real estate income in addition to your salary, you will naturally have to file a tax return.
This utilizes a system that allows the deficit incurred on the real estate balance sheet to be added to taxable salary income.

Example of getting back withheld income tax through a refund

The numbers are just schematics, but this gives you an idea of what it looks like.

Let's say there is a person whose salary income is 5 million yen.
From that amount, various deductions are subtracted, and the remaining taxable income is multiplied by the tax rate to determine income tax.

Normally this would be the end of it, but by managing real estate, the profits and losses from it are added to this taxable income.

If there is a deficit on the real estate balance sheet, that amount will be deducted from your taxable income, and the amount of income tax you pay will be revised downward.
In other words, the total amount of income tax deducted as withholding tax for the year will be treated as "over-deducted," and the difference will be refunded.

Similarly, if taxable income decreases, the amount of local tax will also decrease, so the amount that would normally be deducted will also be revised downward.

What do you think?
When I hear about it, I don't think it's a particularly complicated system.

In fact, by utilizing this system, you can achieve tax savings, so this in itself is not a problem.

However, as mentioned in our previous video explaining Dead Cross, this effect has its pros and cons.

The problem with sales pitches

The problems are:

・State it in a way that makes it seem like the tax savings will last forever.

・Depreciation, which is the key to making a loss, affects book value

This is the case when customers are not informed of these things and end up being given a sales pitch to encourage them to make a purchase.

The same can be said about the issue of subleasing, where it is common for only one aspect of a certain benefit to be emphasized while the underlying disadvantages are not disclosed.

If a dead cross occurs, the cash flow will be negative but the company will turn a profit, which will result in tax payments. Also, as depreciation progresses, the book value will naturally fall, which could lead to an increase in transfer tax at the time of sale.

It might be one thing if the sales representative has this knowledge in mind, but most people only push the benefits, or there are some who conduct sales activities without even knowing the disadvantages.

In that case, I believe the best defense is for everyone to understand the system and acquire the knowledge to be able to counter sales with proper theory.

By the way, here's another tax saving benefit.
I will explain more about inheritance tax planning next time.

So, please look forward to the next installment in our "What do sales people mean?" series.


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