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This time, it was distributed on CONSPIRIT's official channel on YOUTUBE.Episode 40: Boost your quality of life with real estate management!I would like to send you the contents.

Today's topic is the difference between "tax saving measures" and "tax deferral."

To answer your question first, I think the general understanding is that it is not a matter of tax savings or deferral of taxation, but rather a tax savings measure that uses the means of "deferring taxation."

I am not trying to sophisticate, but rather I would like to point out that there are different types of tax savings, and it comes down to what measures you can use to save on tax.

In essence, the only simple way to save on taxes, as long as the matter is handled in the same year without affecting other business years or the following fiscal year, is, in the extreme, "deduction."

For example, in the case of real estate, the key to tax savings is depreciation of buildings and equipment, but if you take advantage of this, it will affect the capital gain or loss at the time of sale.

As the result, the amount of transfer tax will be large, it is understandable that some people would say that this is simply postponing the tax that would otherwise be paid during the holding period.

I have no particular objection to this.

In fact, there is no doubt that the "tax saving strategies" that real estate agents use using real estate are a form of "tax deferral."
I would be troubled if there were a sales representative who got angry and argued, "No, that's not it! It's for tax savings!"

If the amount of tax to be paid all at once becomes large and there is a risk of a sudden large loss of cash, the damage can be mitigated and spread out by paying it over several years or postponing it.

I think it is important to recognize that this is also one of the strategies for running a successful real estate business.

If you had paid your taxes all at once, you would have the budget that would have been lost, but now you have it in your hands, and you can take measures such as reinvesting it.

In addition, there are cases where owners of entire buildings are suddenly forced to carry out large-scale repair work, and because they were able to keep funds on hand by deferring the work, they were able to start the work and avoid losing tenants.

I believe that understanding the basics of this and making full use of tax savings through tax deferral is important in running a business as a real estate owner.

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