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Tax implications of moving family member into 2nd home

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  • 28-10-2014 9:56am
    #1
    cmssjone
    Registered Users Posts: 355 ✭✭


    Hi all,

    We have been renting an apartment in the centre of town for the last year. We have (I think) done everything that we were supposed to do ie PRTB registration, filed tax returns etc and our tenants have now amicably left due to us needing the apartment for a family member.

    The question is.......what are our tax implications now? We have thought of 2 scenarios

    1) We are planning on charging the relative a nominal amount of rent (c. €100 pm) but in reality it will be us paying the majority of the rent. This will obviously not cover the mortgage and associated costs. I assume that we would have to get him registered with the PRTB in this case.

    2) We let him live there rent free and he just pays for his bill etc.

    For 2) would we have to let revenue know that we are no longer renting the apartment or would we just say we are now no longer receiving an income from the property?

    If the relative decides to leave, which scenario would be more advantageous for our future tax bills when we start taking other tenants?

    Any thoughts/advice is appreciated...


Comments

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    #2
    The_Morrigan
    Moderators Posts: 9,368 ✭✭✭The_Morrigan


    You need proper professional advice on this; please go seek the services of a solr and an accountant.


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    #3
    Mrs OBumble
    Registered Users Posts: 25,712 ✭✭✭✭Mrs OBumble


    I'd also suggest chatting to your insurance company, and getting quotes for the two scenarios. I'm not sure how they feel about people staying rent free.


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    #4
    cmssjone
    Registered Users Posts: 355 ✭✭cmssjone


    Thanks for the replies. Will get professional advice so.


This discussion has been closed.
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