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Where Taxpayers and Advisers Meet

using fr105 for property investment company

jackboy
Posts:29
Joined:Wed Aug 06, 2008 3:32 pm
using fr105 for property investment company

Postby jackboy » Mon Feb 21, 2022 2:13 pm

Hi, I'm working out my return for a proerpty investment company using FR105. When I add the fixed assets of properties, some which were bought nearly 20 years ago and were mortgaged at the time. Some have been remortgaged some haven't. The outstanding mortgage in some is now greater than than the purchase cost so the net assets of the company using FR105, once this and also the money due back to me as director that was initially put into the company, means the net assets are negative. If I used current fair value then the company would be positive. Is this just a limitation of FR105? It seems odd as it doesn't give an accurate picture of the company?

Obviously rental income, mortgage payments, expenses and subsequent tax are easy to calculate so that is all correct. What is the purpose of the rest if it isn;t accurate or have i done something wrong?

Thanks

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