Declaring Rent

TradeSecrets

As a landlord, do you need to declare rental income if its below the 10 grand threshold?

D3PO

you have to declare anyway.

and when you say landlord do you mean rent a room or actualyl renting out a property ? Becasue the 10k threshold is for income under rent a room only

maddogcollins

All income is required to be declared.

As long as it is under the €10000 threshold and you tick the "rent a room relief" box on the Form 12 Annual tax return you will not incur tax.

As you mention landlord: Rent a room relief only appplies if 1 room is being rented from you and you actually live in the house also as your principal private residence. If you do not live in the house or more than one room is being rented you will be liable to tax on any profits.

Edit:- Beaten to the reply!Sorry for repreating what you said D3PO

TradeSecrets

Yeah rent a room only. Had a tenant friend living in the house a few years ago and now she is looking for rent relief. Was only renting 1 room so was nowhere near the threshold and didn't know about declaring. Now if I submit a declaration I will get fined for being late :mad:

D3PO

TradeSecrets wrote: »

Yeah rent a room only. Had a tenant friend living in the house a few years ago and now she is looking for rent relief. Was only renting 1 room so was nowhere near the threshold and didn't know about declaring. Now if I submit a declaration I will get fined for being late :mad:

Now that I dont know, but depending on how long ago it was your friend may not be able to claim anyway.

TradeSecrets

Sept 05 - June 07

D3PO

in your case id ring the revenue and explain to them you were unaware you had to declare if under 10k and see what they say to you.

maddogcollins

TradeSecrets wrote: »

Sept 05 - June 07

Keep in mind also that the rent a room relief rate in 2007 was €7620..If you were over that you will most definatly be caught for rental income and face a late filing surcharge! (as far as i am aware it was €7620 for 2005 and 2006 also). on the plus side you can claim expenses such as Light and heat and repairs (need receipt tho as with a late filing high possibility of inspection)

D3PO

i would doubt a single person renting a room would be paying over 7k though.

unless the OP was renting a room out in a mansion

TradeSecrets

Nowhere near €7650 !! So basically Its just the declaration that hasn't been submitted on time. Anyone know what the penalty is for that?

maddogcollins

unsure as to the penalty for non declaration but as no tax is due i would doubt that a financial penalty would occur. As said abouve just state you didnt realise it was needed to be decalred and you are trying to get it up to date now that you have found out!

TradeSecrets

Thanks, I'll let you know how it goes

The_Conductor

Just remember its gross income (incl. of all bill shares etc) that must be declared.

jelly&icecream

maddogcollins wrote: »

As you mention landlord: Rent a room relief only appplies if 1 room is being rented from you and you actually live in the house also as your principal private residence. If you do not live in the house or more than one room is being rented you will be liable to tax on any profits.

I've never heard of a restriction that only one room could be rented out?? Surely it doesn't matter how many rooms as long as the income is under the 10 grand limit, and you are living in the house.

eden_my_ass

jelly&icecream wrote: »

I've never heard of a restriction that only one room could be rented out?? Surely it doesn't matter how many rooms as long as the income is under the 10 grand limit, and you are living in the house.

There is no 1 room restriction.

maddogcollins

Sorry ya, no 1 room restriction..i was trying to get the point about living in the house accross. My bad!

jelly&icecream

maddogcollins wrote: »

Sorry ya, no 1 room restriction..i was trying to get the point about living in the house accross. My bad!

Lol, no problem, you had me worried for a second!