- Location
- South West
I've been asked a question that I can't quite answer properly.
Is it better to rent or buy a farm in terms of tax efficiency? I've always thought buy (if possible) for obvious reasons, but is it sensible tax wise? ie Rental payments can be written off as an expense but mortgage/loan payments aren't....does that potentially lead to a double whammy of paying out and also then having tax to pay making everything unviable? I got myself in a right pickle trying to explain and am now totally confused.
Anyone got a simple explanation?
Is it better to rent or buy a farm in terms of tax efficiency? I've always thought buy (if possible) for obvious reasons, but is it sensible tax wise? ie Rental payments can be written off as an expense but mortgage/loan payments aren't....does that potentially lead to a double whammy of paying out and also then having tax to pay making everything unviable? I got myself in a right pickle trying to explain and am now totally confused.
Anyone got a simple explanation?