Depending on the contractual agreement different scenarios will unfold: The calculated present value of the ground rent should be deducted as preload from real credit-qualified share (60 % loan to value ratio x value minus the preload). The ground rent is in the range of possible initial debt.
The ground rent is fixed despite foreclosure. In this case, the ground rent is retained even in the event of a forced sale of the leasehold. This can be done by an appropriate standstill declaration of a public service provider, or by a ground lease agreement. Once there is the ground rent, the capitalized ground rent to be deducted as depreciating.
The ground rent is not agreed on foreclosure is deemed permanent. In this case, the ground rent is not considered. For smaller objects, the land value is often completely deducted and does not make any reductions on the ground rent for the sake of simplicity.
During the period of application of depreciation: the rate of the standard deduction on property income is reduced from 14 % to 6%. Improvement expenses are deductible under common law and reconstruction spending and expansion for which a subscription has not been opened are not entitled to a deduction for depreciation.
The granting of this benefit, however, is subject to the condition that 95% of the subscription appreciated without considering the costs of collection used exclusively to finance the acquisition of new housing or the future state of completion and the commitment to:
The Corporation to lease unfurnished homes purchased for 9 years to use residence tenants in accordance with the rent ceilings set annually by decree. When a subscription is assigned to the achievement of several investments, lease commitment of the company must be taken separately for each unit. The company must provide each Associates a statement in duplicate justifying the previous year, the shares held.
Partner to retain all of its shares until the end of the period of the lease commitments entered into by the company for the last home acquired through its purchase. The commitment of the Unit holder (Tax Lien Home Buyers) is found on a document attached to the income statement in the year in which the shares were subscribed.
If the partner transfers all or part of its shares before the expiry of the period covered by its commitment to retain shares, the Tax Lien Home Buyers benefit is challenged by the recovery in income, the year when this event occurs, the deduction for depreciation of the subscription he received.
If the sale of the shares involved in one or the other of the two three-year periods of extension of the scheme, only the deductions performed during the entire period in question are challenged.
