USE OF PROPERTY OF INDIVIDUALS IN BUSSINES ACTIVITIES: PROBLEMS AND PROSPECTS

Abstract

The presence of real estate in individuals imposes obligations on its rational use, maintenance, as well as the payment of taxes. At the same time, tax liabilities arise in two cases: in connection with the ownership of property and with its use. The desire of citizens to increase their personal well-being leads to situations of using existing property in order to obtain additional income. In this case, various kinds of tax incidents arise. The law enforcement practice of property taxation of individuals is extremely contradictory, but basically boils down to the classification of income from the use of property to the implementation of entrepreneurial activity with all the ensuing tax consequences. Despite the fact that, for the most part, citizens are trying to be law-abiding, nevertheless, the presence of tax disputes related to the use of property of individuals in business activities is increasing. The tax policy of the state on this issue is reduced to the formation of a law-abiding taxpayer, who in this case is provided with various kinds of tax benefits and preferences. The current analysis of the situation has shown that a significant part of individuals, earning on real estate, strive to minimize tax liabilities, thereby increasing tax risks.