How to easily manage deductions, business tax schemes, and taxes for your parent-purchased property

You have reached a fortunate point in life where you are able to help your children with housing in one of the country's university cities through a parent-purchased property. It is a great relief to have the housing situation sorted, which is otherwise a challenge for many young people. So far, so good.

However, this fantastic opportunity comes with a bureaucracy of rules regarding rent, tax matters, and other legal requirements that must be met. It is frustrating that it is so incredibly expensive to get help with tax returns and tax matters when, fundamentally, you just want to help your children.

For your accountant, a parent-purchased property is a minor task. Highly specialized staff at accounting firms are billed at a high hourly rate, which is both logical and fair. For small tasks like parent-purchased apartments, the accountant's bill can easily eat up 10% of the apartment's annual income in fees.

This creates a dilemma for both you and your accountant – does such a high accounting fee provide enough value compared to the overall finances of your case?

“For small tasks like parent-purchased apartments, the accountant's bill can easily eat up 10% of the apartment's annual income in fees.”

At Reportability, we are addressing this challenge. We have created a digital self-service solution for parent-purchased properties. You can easily prepare your own annual tax statement and file your tax return on the SKAT website. We have packaged the rules into a self-service guide so you can create your preliminary income assessment and annual tax statement yourself. This allows the accountant to focus on advisory tasks that cannot simply be digitized. This is where the accountant creates the most value for you both – as a trusted advisor rather than a data entry clerk – which is a win-win for you and your accountant. Read more about how you can create your own annual tax statement and report to SKAT here.