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Old 30.11.2015, 13:48
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Property purchase timing and tax implications

We are looking at buying a property which, if we are successful, would be completed at the Notary just before Christmas.

I was wondering, if it makes any sense financially or otherwise to delay the handover date until 1st Jan, in terms of completing our taxes for 2015.

Does anyone have any thoughts on that? Of course, it would mean that we wouldnt have to declare a property on that year's taxes, but I don't really know if that is a good thing or not?

Your thoughts appreciated
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Old 30.11.2015, 14:08
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Re: Property purchase timing and tax implications

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We are looking at buying a property which, if we are successful, would be completed at the Notary just before Christmas.

I was wondering, if it makes any sense financially or otherwise to delay the handover date until 1st Jan, in terms of completing our taxes for 2015.

Does anyone have any thoughts on that? Of course, it would mean that we wouldnt have to declare a property on that year's taxes, but I don't really know if that is a good thing or not?

Your thoughts appreciated
Your net worth will likely drop a few hundred thousand as official valuation will be lower than cost, so you will possibly slightly les tax on assets. Perhaps that's also telling you your overpaying ......
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Old 30.11.2015, 14:12
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Re: Property purchase timing and tax implications

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Your net worth will likely drop a few hundred thousand as official valuation will be lower than cost, so you will possibly slightly les tax on assets. Perhaps that's also telling you your overpaying ......
I agree. Because properties are almost always massively undervalued by the tax office, buying is a great destroyer of wealth on paper and doing so before the new year may save you a bundle on wealth tax.

Owning a property does increase the complxity of your tax declaration somewhat, but its really very moderate: just two or three additional figures you need to keep track of. And you're going to have the bite the bullet at some point so why not do it now?
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Old 30.11.2015, 14:37
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Re: Property purchase timing and tax implications

wealth tax is so little, it is hardly worth bothering with. maybe more worth considering is whether it changes your tax status in anyway (or gives you the opportunity to). e.g. whether you can relocate your place of residence to a more favourable place before the year end.
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Old 30.11.2015, 15:24
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Re: Property purchase timing and tax implications

It would be a fixer upper so we wouldn't actually move in for a few months at least.
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Old 30.11.2015, 15:33
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Re: Property purchase timing and tax implications

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It would be a fixer upper so we wouldn't actually move in for a few months at least.
Have you had the quotes yet?
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Old 01.12.2015, 12:53
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Re: Property purchase timing and tax implications

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wealth tax is so little, it is hardly worth bothering with. maybe more worth considering is whether it changes your tax status in anyway (or gives you the opportunity to). e.g. whether you can relocate your place of residence to a more favourable place before the year end.
That's a good point but in our case the change won't make much difference there.
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Old 01.12.2015, 15:54
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Re: Property purchase timing and tax implications

Some points:
- if you are not moving in immediately, then you are still living in your old tax area for 2016

- it is a fixer-upper, so you are going to be able to write off some of the costs from your income tax. This has nothing to do with when you buy the property, but lets say you pay a downpayment to your new kitchen provider in December, you can write it off in 2015 (assuming that in 2015 you are living in a more expensive tax area).

- are you selling your old place? Date it on the anniversary of when you bought it as an additional year completed it will save you some % from capital gains tax.
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Old 01.12.2015, 19:46
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Re: Property purchase timing and tax implications

If it was in a lower tax area, you could save on income tax for the whole of 2015 if you move your main residence there before end of the year.
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Old 01.12.2015, 22:17
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Re: Property purchase timing and tax implications

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We are looking at buying a property which, if we are successful, would be completed at the Notary just before Christmas.

I was wondering, if it makes any sense financially or otherwise to delay the handover date until 1st Jan, in terms of completing our taxes for 2015.

Does anyone have any thoughts on that? Of course, it would mean that we wouldnt have to declare a property on that year's taxes, but I don't really know if that is a good thing or not?

Your thoughts appreciated

If you own the property before the end of 2015, assuming you have a mortgage then you will have debt to offset the asset on your tax declaration.
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Old 02.12.2015, 07:10
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Re: Property purchase timing and tax implications

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Some points:
- if you are not moving in immediately, then you are still living in your old tax area for 2016

- it is a fixer-upper, so you are going to be able to write off some of the costs from your income tax. This has nothing to do with when you buy the property, but lets say you pay a downpayment to your new kitchen provider in December, you can write it off in 2015 (assuming that in 2015 you are living in a more expensive tax area).

- are you selling your old place? Date it on the anniversary of when you bought it as an additional year completed it will save you some % from capital gains tax.
This is worth while investigating but you will need to have your running shoes on to get value from it before the end of 2015. You are unlikely to get any reasonable quotes this time of year as most of us are too busy trying to deal with what we have before Christmas. I would look at flooring and kitchen appliances as two easily quantifiable high value purchases to help your tax this year.
For kitchen appliances I would look at nettoshop.ch, I have purchased a set of kitchen appliances from them this week and service has been good, they offered me a package price lower than their online prices, MP Huasgerate.ch is another one with slightly cheaper prices but this is a front for a German company. So not necessarily bad but in 7 attempts to call them no one will answer a phone call and netto pretty much matched their prices.
I can do supply only on wood, terrace decking and flooring materials at trade prices plus my cost which will give you access to a greater range of product, I can also install these if you require, PM me if this is of interest to you. Note it will be February before I have a window to take on another major project.
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Old 02.12.2015, 07:48
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Re: Property purchase timing and tax implications

We would be moving from a rented place in one part of Zürich City to our new place in a different part, but still in Zürich City so still the same 119% tax bracket.
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