Last week, I divided, as I have a stroke every April 15th by the number of calls from my office by the public is looking for help at registration for an extension. This April 15th not to disappoint!

Some of the appellant knew that the need for a federal extension, but they were not always on the state of renewal. Of course, the appellant knew, if the file for an extension of the State in which they lived, but my team also called on other countries and the response was generally calm.

This part of the 15th April is not shock me, because I always need new clients and their tax obligations and the answer is more and more insecurity.

More than the state income tax – State tax, in general, in three forms:

Tax income tax

Many entrepreneurs (and Real Estate Investors!) Not difficult to achieve once it is not with the state tax. It is very common, I see again and again.

A couple of investment in rental property in their country for several years. They split up and purchase of 2 new homes in a neighboring state. The couple knows real estate must pay taxes in neighboring countries and those in need, for a declaration of state taxes in neighboring countries. The couple believe they have their national taxation.

This is not the case. Based on the above list, the couple, the tax and income tax but not VAT. And yes, many countries have a VAT on rental income. The couple was one of those States.

The portion of the taxes erschreckenste State – The State erschreckenste taxes is part of the huge accumulation of costs, with non-compliance.

With this couple, the 2 new properties were in a state of 5% VAT to the right of rental income. The couple did not know what they have never received from their tenants. The State provides 3 years later and required them to file VAT returns in the past 3 years.

Here’s what she said: The monthly rent for the 2 items on average $ 3,000. At 5%, the monthly turnover of $ 150 This amounted to $ 1,800 per year, so for 3 years, the couple compared to $ 5400th And with penalties and interest on the sum total of $ 6500!

Beautiful to VAT, it is possible for your customers (or rent), so that you can for your clients and work to the State. But if you do not know that you are gathering and they do not, this does not mean you’re Schneider. In this situation, you’ll have with money.

The couple had an unexpected bill of over revenues of $ 6500th Fortunately they had the means to pay the bill, but it impeded their ability to their real estate investing, as planned.

The solution – the solution for this couple is very simple. Collection of VAT by tenants and on time. It is an expensive lesson to learn, and I see many people learn the hard way.