In accounting |
Treated as capital. |
Treated as income. |
In LLHC taxation |
No effect until the funding is ended, and then all funded charges are taxed. |
Treated as taxable income. |
Can be used to cover costs or loan paybacks |
Not without ending the funding. |
Yes. The only way to do so if the LLHC does not have other income sources. |
For an LLHC shareholder who lives in the flat |
Monthly fee, not tax-deductible. |
Monthly fee, not tax-deductible. |
For an LLHC shareholder that lets the flat forward (investor) |
Monthly fee, not tax-deductible. |
Monthly fee, tax-deductible. |
The tax effect for LLHC shareholder that lives in the flat when the flat is sold |
Funded charges are added to the acquisition cost of the flat, therefore decreasing taxable profit. |
No effect. |
The tax effect for the investor when the flat is sold |
Funded charges are added to the acquisition cost of the flat, therefore decreasing taxable profit. |
No effect. |