Rent Relief at Home

Caroline_ire

Hi just wondering can I claim for rent relief at home? I dont want to start applying for stuff i dont understand incase the tax man comes after my parents im paying 100 a week to dad.

Caroline_ire

plus is anyone claiming this every year without any problems? I read something about claiming up to 10,000 a year is ok??? plus can i go back to 2005

WIZE

have you got receipts for paying rent to your dad

Caroline_ire

no, only goes into his account every wednesday on my 365 online. So i take it thats a no that i cant claim it? ive heard of other people claiming it off their parents who still live at home, thats why im only asking.

WIZE

I dont know caroline

Have a look at this


http://www.citizensinformation.ie/categories/housing/renting-a-home/tax_relief_for_tenants

Ticktactoe

Caroline_ire wrote: »

Hi just wondering can I claim for rent relief at home? I dont want to start applying for stuff i dont understand incase the tax man comes after my parents im paying 100 a week to dad.

Hi

You cannot claim rent relief if you are living at home. The 10,000 applies to rent-a-room relief which is where you own a house which you are living in and are renting out a room in it. You can receive up to 10,000 before you have to start paying tax on it.

There is no relief on money paid to parents.

Caroline_ire

thanks a million for your help, thats what i needed to know thanks

Legend100

you can claim rent tax credit if living at home and paying parents but your parents cannot claim rent a room relief in this case
Below is extract from Revenue.ie

Can the Rent Tax Credit be claimed if the Tenant is living with their parents?

Rent relief can be claimed where a child is required to pay rent to their parents. The amounts paid however must be Rent as the term would normally be understood and not merely a contribution towards the upkeep of the household. Since 2007 where the Rent Tax Credit is claimed by a child paying rent to their parents, the parents will not be allowed to claim the Rent a Room exemption (this is an exemption allowed to landlords who Rent a Room out of their Principal Private Residence and who's Gross Rental Income from this does not exceed €10,000 in 2008 (€7,620 in 2007)). This means that the parent will need to declare their rental income on their annual Tax Return and pay any Income Tax arising.

Dan Chipowski

The above poster is correct, you can claim it, but your folks will need to return the income for income tax purposes.

The Blonde One

The rent relief you would get would not be worth the bill your parents would get at the end of the year!!

DARCHA22

Credit is claimed by a child paying rent to their parents, the parents will not be allowed to claim the Rent a Room exemption (this is an exemption allowed to landlords who Rent a Room out of their Principal Private Residence and who's Gross Rental Income from this does not exceed €10,000 in 2008 (€7,620 in 2007))

Does this mean that someone can claim rent releif for previous years and parents wont have to foot the income tax? 2005, 2006, and 2007.

Does this make sense

misspiggy40

From Jan 01 2007 a parent cannot claim the rent a room relief on rent paid by their child but prior to that they could. Don't forget the ceiling changed every year and if you went over it you would be liable to tax on all rental income.

Also I don't know how successful you would be in claiming the relief now for let us say 2006 because, as I understand it, you were supposed to declare your rental income, whether taxable or not, in your annual return.:(

foxy06

The Blonde One wrote: »

The rent relief you would get would not be worth the bill your parents would get at the end of the year!!

I used to claim this relief when living at home and my parents never recieved a bill

Redjohnno

I used to claim this relief when living at home and my parents never recieved a bill

unfortunately in this case, either you are falsely claiming rent relief, or your parents are in the wrong for not declaring this as rental income - they don't let you have it both ways.

Short summary of rent relief here

Ticktactoe

Appologies Caroline! It seems that this was changed in 2007!

It depends on your parents income and credits but if your parents end up having to pay tax on the money received from you then this really means that you will receive money back due to the relief but your parents will have to pay it when they declare it for tax purposes....

Again it depends on your parents income.

Random

Someone I know recently did this. They put in a claim for the past 4 years for money given to their parents each month.

They say they got a nice lump sum back.

The parents have done nothing in terms of "declaring" this income or what not.

Is this "abuse" of the system or what's the story then?

Thanks

misspiggy40

I don't know what to say there. All income other than PAYE is self assessment these days and I suppose some people will take the risk of not declaring thinds. If you don't follow the letter of the law and you get auditted there are lots of nasty fees and penalties.:(