Tax question..its a little complicated..

AckwelFoley

Hello.

My father owns a few apartments, which at the moment are not rented. Ive refurbished one of them and i want to rent it. I want to pay the tax on it as i will be the one thats in receipt of the rental income, however as the property is not in my name but my fathers will this lead to any complication regaring his liability?

Any help apreciated

francish

It is an unusual situation. If someone rents the apartment, a lease will need to be signed. As you do not own the apartment, you cannot sign the lease, unless you have leased the apartment and are subleting it.

AckwelFoley

francish wrote: »

It is an unusual situation. If someone rents the apartment, a lease will need to be signed. As you do not own the apartment, you cannot sign the lease, unless you have leased the apartment and are subleting it.

Thanks for the reply. I had suspected that.

If i lease it from my father formally, for a token sum like 1 euro and then, as you say sub let it out is that possible? Or is there a minimum amount i would need to pay to my father to lease it?

moving_home

My understanding is if you lease the apartment at undervalue you would be liable to Gift Tax on the difference between the open market value and the amount you are actually paying for the lease.

AckwelFoley

moving_home wrote: »

My understanding is if you lease the apartment at undervalue you would be liable to Gift Tax on the difference between the open market value and the amount you are actually paying for the lease.

ive never heard of this but wouldt be suprised

Halla Basin

No challenge is too great for I, Halla Basin!

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Diamond_25

the beneficial owner of the property is entitled to the rent - that is your father

if you let it from him for undervalue that is a gift but you have your annual gift amount €3k and your massive group A threshold - €434k so no fear of that arising anytime soon

u will be subject to tax on the profit u make - i.e. rent less your expendiute e.g. repairs - note that pre letting expenditure is non deductible, also if the expenditure is capital in nature not deductible - i would expect that the refurbishment would be capital

Mr. Incognito

Please read the charter re specific advice.

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